4.
THIS IS A COPY
THE ORIGINAL HAS BEEN CLOSED UNDER
FOI EXEMPTION NO. 27
Sir Adrian said that a second major concern was inflation. It was vital to keep wage rises down. Failure to do so would result in Hong Kong losing its competitive edge.
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There was a brief discussion of the effect of the Gulf on the airline industry. Sir Adrian said that fuel prices had increased by 250% since June 1989. Cathay were doing better than most because they had relatively new and fuel efficient aircraft and were financially sound. Passenger bookings were holding up. Other national airlines (BA, Quantas, and a number of US airlines were mentioned) would have greater difficulties. The first to go would be the charter services, using older, less fuel efficient aircraft.
4 December 1990
Reta Tibber
Peter Tibber
PS/Lord Caithness