systems.
Franchises needed therefore to be agreed within
about 18 months. The question China's agreement would need
to be addressed. Franchises needed to be awarded by
Government but was AA a governmental organisation? Would China view airport franchises as an inherited responsibility?
Mr Allen referred briefly to the difficulty in recruiting
staff from the UK because of the political uncertainties.
Mr Burns asked about cost escalation. Mr Allen confirmed
this was a continuing anxiety. The construction industry
in Hong Kong could become over heated. At present there was a surplus of good labour, and goods and materials available. However, overheating could happen very quickly especially
in dredging. Hong Kong Government must be careful not to emphasise too strongly the scale and importance of the projects. This would invite comparis ons with the Channel Tunnel, costs of which had more than doubled, (but the Airport would not involve exotic new technology).
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