COVERING SECRET
GENERAL ECONOMIC QUESTIONS
Replacement Airport
1.
The siting of the new airport was discussed in ExCo on 17 February
(Memorandum XCS(81)1 attached) and it was decided to proceed with the
Chek Lap Kok site. Planning and technical studies have now been
commissioned.
The question that needs now to be considered is when are
paragraph 7 of the ExCo paper.
the Chinese to be approached on finance
Air Services
2. The position on regional air services has not changed since briefing
was prepared for the Secretary of State's visit (attached).
Bus Fares
3.
Fare increases of about 40% (KMB) and 30% (CMB) were announced on
10 April, together with a Government payment of $40 million to KMB to
cover this year's deficit. The effect this will have on bus sales is
described in BTC Telno Creda 117 (attached).
increases has been mixed but not as vociferous as had been feared.
Public reaction to the
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