From: newsdis%bat@CSD.HKU.HK (News Distributor)
Newsgroups: soc.culture.china
Subject: China & HK News
Date: 7 Apr 92 16:47:22 GMT
X-Unparsable-Date: Tue, 7 Apr 92 23:44:36 HKT

Source : South China Morning Post
Date   : 3/4th April, 1992

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Macleod defends new figures on airport cost
One third of delegates refuse to approve the Three Gorges project
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Macleod defends new figures on airport cost
===========================================

By FANNY WONG, DANIEL KWAN and DOREEN CHEUNG

THE Financial Secretary, Mr Hamish Macleod, yes-
terday rejected claims that the Government was trying
to hide the true cost of the 10 airport core projects,
amid legislators' concern over the estimates pub-
lished on Wednesday.

In a major campaign to explain the rise in costs from
$98.6 billion to $112.2 billion, the Government held
briefings yesterday for groups including the Legisla-
tive Council ad hoc group studying the airport projects
and the Airport Consultative Committee.

The Chinese Govcrnment was told of the new figures last
month and briefing sessions on the revised estimates are also
planned for mainland officials.

The need for $12.9 billion in equity to be on call for the
Mass Transit Railway Corporation (MTRC) and thc Air-
port Authority is also to be explained.

The Government is hoping that China will respond as
soon as possible. Officials will only go to the Finance Com-
mittee for funds afler ''China's concern goes away".

Legislative Councillors yesterday warned that they would
closely scrutinise the funding requests in light of the rise in
the overall estimates.

Thc Government said it could not guarantee that the
latest set of estimates would be final.

Speaking at a press conference, Mr Macleod said: "It is a
huge project, a complex project, and there is nowhere in the
world where anyone can give you a guarantee that figures
will not change. That is, not in the real world.

"What we can do is to give assuranccs that this is an hon-
est estimate, with sensible contingencies and other measures
which will help to cover unforeseen developments."

But the Secretary for the Treasury. Mr Yeung Kai-yin,
said that the latest estimates had a degree of finality.

"It is unlikely there will be any significant changes," he said.

Excessive spending which might put a burden on the fu-
ture Special Administrative Region (SAR) government has
been a major concern for China.

Mr Macleod said the Chinese Government had yet to
respond to the new estimates.

"I don't think there's been a reaction. They've got them,
they are studying them and of course there will be discussion
with them to explain the figures, which are very complicat-
ed, and need to be explained." he said.

"But the Chinese Government is committed to taking a
positive attitude to all such matters."

China's top envoy in Hongkong, Mr Zhou Nan, reacted
cautiously~ saying such issues would be handled by special-
ists from both sides.

"At present, there are such specialised organs as the Air-
port Consultative Committee and the Airport Committee
under the Joint Liaison Group which will study the problem
of cost overruns,'' said Mr Zhou, the Director of the
Hongkong branch of the New China News Agency.

He reiterated China's position that the construction of
the new airport should not increase the financial burden on
the SAR government.

Separately yesterday, the director of the Hongkong and
Macau Affairs Office under the State Council. Mr Lu Ping, re-
affirmed China's commitment to honouring the airport memorandum.

In a reference to Mr Macleod and concern over huge
spending, Mr Lu said: "Didn't he say by 1997, there will be
$70 billion left for the SAR government? Why do you have to worry?

"Why does he leave $70 billion? I believe he may have
taken into account that the costs could exceed the original estimates.

''That's why [he] has to leave $70 billion. He must
have considered [it] in making the decision."

Mr Lu urged Hongkong people to express their views
and urged legislators to monitor the costs.

His senior aide, Mr Chen Zuo'er, said: "Until now, we
haven't yet seen the airport financial report, and we hope we
can have it soon."

Mr Chen also expressed concern at the cost overrun of
the airport projects and stressed that handling of the projects
should be in line with the Airport Memorandum.

Conceding that the Legislative Council would have to
make a certain commitment in approving the equity available
on call, Mr Macleod said the Government would put the
full picture to the Finance Committee.

Although the Government excluded from the cost
figure the amount of $12.9 billion in equity that could
be called upon later by the MTRC and the Airport Au-
thority if needed, Mr Macleod stressed that this was
the right approach, and was not meant to deliberately
suppress the true cost of the airport projects.

"We are not hiding anything. It will have to go to
the Finance Committee, and they will have to take a view
on whether they accept it or not, so they would have the
full picture put before them," he said.

Mr Macleod said that a distinction had to be drawn
so that the money which would definitely be spent
would be the stated cost, while the contingent liabil-
ities were funds which the Government might or might
not spend.

When asked how much of the $12.9 billion equity
might be called on after 1997, Mr Macleod said:
"We hope none of it will be called.''

Explaining the need for the equity, the Principal As-
sistant Financial Secretary.  Mr Stephen Selby, said:
''The Government as the sole shareholder [of the two
corporations] has to ensure that the corporations have a
sufficiently comprehensive financial package to enable
them to raise loans in the privale sector without the
need of a government guarantee.

We feel the most cost-effective form of support is
for the Government to commit itself to pay up call-
able equity if the corporations were placed with ad-
verse circumstances.

"It's worth noting that we had callable equity in the
MTRC disclosed in our accounts for a number of
years, and never in the history of the corporation have
we needed the callable equity.''

Legislative Councillor Mr Allen Lee Peng-fei said
the 13.8 per ccnt increasc in the cstimatcd cost of the air-
port core projects warranted closer scrutiny by the Fi-
nance Committee Mr Peter Wong Hong-yuen said legislators would
also closely monitor the operations of the Airport Au-
thority and the MTRC.

He said the current situation had similarities to that
of the University of Science and Technology's cost over-
run. in which thc Government had not been able to
come up with a sufficiently accurate cost cstimatc in the
project's early stages

But I believed that the Government would be more
cautious this time," he said

Miss Emily Lau Wai-hing urged the Government
to provide accurate costs rather than rough estimates
in seeking funds from the Lcgislative Council.

She said the airport project had adopted a fast-track
approach, which would mean higher costs.

United Democrat legislator Mr Lee Wing-tat said the
Democrats were surprised to learn of the high cosl of
the Airport core projects.

Mr Lee said the Government had failed to provide a
satistactory answer as to how the cost could have in-
creased to the present level.


Uproar in NPC vote over dam
One third of delegates refuse to approve the Three Gorges project
=================================================================

From DANIEL KWAN and GEOFFREY CROTHALL in Beijing

ONE third of China's legislators yesterday refused
to approve the Three Gorges hydro-electric
project - an act of defiance unprecedented in
the history ofthe National People's Congress (NPC).

The closing session of the NPC was disrupted by
demands from the floor by Taiwan-born delegate Mr
Huang Shunxing to be able to put a case against
the dam project.

As Mr Huang shook a sheaf of papers detailing the
NPC regulations in the air, the speaker Mr Wan Li ruled
from the podium that no debate was permitted.

''Please vote with your voting machines," Mr Wan
said. Ieaving Mr Huang accusing the authorities of vio-
lating their own rules by for- bidding him to present his case.

The 100-metre-high dam on the Yangtze River will
cost 57 billion yuan (HK$80.82 billion) and
drive the world's most powerful hydro-electric turbines.

Despite heavy-handed lobbying by the Chinese
Communist Party, whose Central Committee plenum
had approved the scheme last November, only 1,767
of the 2,633 deputies in the Great Hall ofthe People vot-
ed in favour of the project.

There were 177 votes against and a remarkable
number of deputies, 664 in all, abstained. Another 25
deputies did not vote at all.

With the legislature's imprimatur, the 10-year
project which will require the relocation of a million
people and take at least 10 years to build, will be includ-
ed in the nation's 10-year economic blueprint.

The vote in favour was by far the lowest for any of
the 12 resolutions put to the closing session yesterday
and indicated the strong groundswell of discontent
that still surrounds the Three Gorges project.

When the delegates had punched their votes into the
computer, Mr Wan and the other leaders on the podium
seemed taken aback.

The Prime Minister, Mr Li Peng, one of the project's
main proponents, looked genuinely surprised.

But he quickly joined in the enthusiastic round of ap-
plause which followed Mr Wan's announcement that
the resolution had been approved.

That the Communist Party is determined to main-
tain the rubber-stamp nature of the NPC, however.
was evident when Mr Huang challenged attempts by Mr
Wan, who is also a politburo member, to rush through the voting.

Mr Huang, who settled in the mainland in the early
1980s, demanded that he be allowed to address the assembly.

''This is wrong. This law has not been changed," Mr
Huang shouted, pointing to the book of regulations.

"What I am doing is strictly law-abiding. This
[body of procedures] was promulgated by State Presi-
dent Yang Shangkun.

''I have registered with the secretariat four days ago
requesting to speak in the congress," said Mr Huang, a
member of the NPC Standing Committee.

''Now, without any legal basis, you [Wan Li] have re-
jected my request," he said.

Pandemonium reigned for the next five minutes as
the press corps descended on the Taiwan delegates
seated near the front of the hall.

Several hundred deputies stood to see what was
happening, while the leaders on the rostrum looked on
anxiously.

''Bascd on the agenda, we will not accept public
speeches." Mr Wan shouted above the noise.

''Delegates, cast your votes now." he said, raising
his voice each time he repeated the message.

''Cast your votes, cast vour votes," he said in his
heavy Sichuan accent.

''lllegal, illegal.'' Mr Huang shouted back.

The commotion did not die down until Mr Huang,
after packing up his documents, walked out of the
Great Hall of the People.

At the same time, Ms Liu Caipin, another Taiwan del-
egate sitting near Mr Huang, joined him by shouting from
her seat: ''The NPC has violated its own law.''

After she pressed the ''objection" button of her
computer, she also left.

I protest, I protest," she chanted.

''His demand is legitimate. Why not let him
speak?'' she said as she stormed through the hall.

During Mr Huang's protest, China's top policeman
and politburo member Mr Qiao Shi, held an animated
discussion with President Mr Yang Shangkun, with
Mr Wan sitting between them looking increasingly perplexed.

Mr Qiao gesticulated toward the Taiwanese dele-
gates as he spoke.

As the results of the vote flashed on an electronic dis-
play on each side of auditorium, Mr Huang started to
leave the auditorium, with security guards trying to
keep reporters away from him.

''This is not allowed.  Move away," one guard said
and pushed reporters back.

But as Mr Huang slowly made his wav out of the
Great Hall, he said his outburst was not because of his
Taiwanese background.

"You all know that the Yangtze River will not dl own
Taiwan. Why should I bear all this trouble to protest?"

Outside the auditorium, Ms Liu said the project
should be postponed because many technical problems
had never been studied thoroughly and the NPC had
suppressed dissenting views.

She pledged to monitor the project's progress.

"This will be a very long battle. They still have to
solve a lot of problems."

Mr Huang lambasted the rubber-stamp parliament for
violating the constitution.

"What is the use of [holding] this meeting? They have
no respect for law," he said.

"I have done all I can as a Chinese citizen ... there is
nothing more to say."

When asked whether he would appeal the decision,
he said: "The NPC is already the highest authority
and supervisory organ here.  What can you do with it?"

When asked whether he would give up his NPC mem-
bership, he said: "This is crazy. What's the point of
being a NPC delegate?"

After the meeting, the Minister of Water Re-
sources, Mr Yang Zhenhuai, declined to comment directly
on Mr Huang's outburst.

"I don't know what's happened," he said.

When asked about his reaction to the large number of
abstention and objection votes, he said the results
were "natural" and reflected the "democratic nature" of the NPC.

"Given the size of the project, it is normal that
some people would have different opinions," he said.

Sichuan Governor Mr Zhang Haoruo, who voted
for the project, said he supported the plan although the
majority of Sichuanese were against the project.

"I believe this project deserved my support," he said.

A former vice-minister of culture, Mr Ying Ruocheng.
said the Three Gorges project should never have
been discussed by the NPC in the first place.

"When you are ill you go and see a doctor.

"It's the same with this: the State Council should
have consulted the scientific experts on this and listened
to their advice, not ask the NPC to vote on such a com-
plex and technical issue," Mr Ying said.