TNAG-2274-FCO40-3273-Seminars-attended-by-ministers--officials-and-businessmen-co-1991 — Page 94

3.

Cazenove thought that the country with the best prospects in South East Asia was Indonesia, with its huge natural and human resources. Labour costs there were cheaper than anywhere else (Chinese labour in Guandong was twice as expensive and labour in Malaysia more expensive still) and manufacturing industry would inevitably settle where unit costs were lowest. Singapore was a financial centre, not a "real" economy; it had no manufacturing base, although it was trying to expand into the Malaysian border area and into Bataan in a way comparable to Hong Kong's relationship with Guandong.

4.

Mr Lampson said that one motive in opening in Singapore had been to secure foreign passports for their long-serving Hong Kong staff. It would be essential to be seen to be doing something for them if younger staff were to remain with the Company. Two years service in Singapore should make Hong Kong staff there eligible for Singaporean passports. However, since the Singapore office had been open for less than two years it was too early to see whether the scheme would work.

5.

Lord Caithness was impressed by Mr Lampson.

that Mr Lampson might be a good candidate for a "brainstorming" dinner.

He thinks

Brandowany Fule

にひ

int Tin

Peter Tibber

PS/Lord Caithness

IGWAL сол

BRADE / UK /MW/CHINA

12 March 1991