CONFIDENTIAL

ASIAN DEVELOPMENT BANK: 25TH ANNUAL MEETING OF THE BOARD OF

GOVERNORS

HONG KONG, 4-6 MAY 1992

BRIEF NO: : HONG KONG

Objective

To be able to comment favourably on business confidence in- Hong Kong, on its economy and on current political issues, and rebut any criticism of HMG's policy on Hong Kong.

Points to Make

Economy

Inflation

Economy buoyant. Growth forecast at: 5% for 1992.

remains high at-10%. Business confidence high. Hang

Seng index at-record high. Trade and investment links with:

China are increasing. Hong Kong is now 10th largest trading economy in the world.

New Airport-

--Projects:are on course. Number of contracts already

awarded. British companies have been reasonably successful. Major contracts eg Main-Bridge and site preparation- contracts remain to be awarded. Important that Hong Kong can press ahead quickly to meet tight schedules.

-

JIG

·Progress not as quick as we would have hoped, particularly, in view of commitments made during: PM's visit to: China in

September 1991.

--Much work to be done; need to speed up

*AEKACZ71

IRBE

CONFIDENTIAL-

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