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acknowledged that there could be economic uncertainty in the early 1990s. We were planning to start a series of major infrastructural projects, such as a new airport, in the early 1990s, and these should help to maintain confidence at that time. We hoped to finish the airport by 1997 as a gift to the SARG, but this might not be possible. Mr. Xu said the airport project was an excellent practical measure, both to solve Kai Tak's problems and to maintain confidence in Hong Kong and outside. He was optimistic about the future. We should both continue to co-operate towards the same goal, even if on some issues it was only to offer to pass on messages to London or Peking.
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CONFIDENTIAL
(CE. Leeks )
PS/GH 13.4.89
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