***************************************************************************
She said the government was spending $22.45 billion on infrastructure works, equity and loans. It would earn a reasonable return on its equity while the loans would be repaid with interest. In addition, the subordinated shares representing the land premium could be converted into ordinary shares. And the economic benefit flowing back to the community over the next four decades would amount to some $148 billion at today's prices.
"That is good news for our economy now and in the longer term. You cannot put a price on the message that The Walt Disney Company sends to the world in choosing Hong Kong for its third international theme park destination," Mrs Chan said.
"We have forged a partnership between two of the world's best-known brand names - Hong Kong and Disney."
Mrs Chan said the detailed negotiations over the past nine months had been difficult as both parties attempted to hammer out an acceptable deal. "The result is an exciting project which I am confident will capture the hearts and minds of the Hong Kong people and millions of others beyond our shores," she said.
The Chief Secretary said Hong Kong Disneyland would provide a tremendous boost to the repositioning of the tourism sector. It would enhance Hong Kong's reputation as a world-class city with world-class attractions.
She believed a good deal had been struck with Disney. "We feel confident in recommending it to the Executive and Legislative Councils, whose approval we need before we can proceed. We feel confident in commending it to the people of Hong Kong, whose support is essential."
Mrs Chan added: "This project belongs to the people of Hong Kong and we would want the community to take ownership of it."
Photo:The Chief Secretary for Administration, Mrs Anson Chan, held a media briefing on the building of a Disney theme park in Hong Kong at Government House. Picture shows Mrs Chan presenting details of the outcome of the negotiations.
End/Tuesday November 2, 1999
NNNN