TNAG-2480-FCO40-3610-Business-matters-in-Hong-Kong-Swire-Group-1992 — Page 40

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

CONFIDENTIAL

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TO PRIORITY HONG KONG

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INFO PRIORITY UKREP JLG HONG KONG, PEKING

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PERSONAL FOR GOVERNOR FROM RICKETTS, HKD

CALL ON THE SECRETARY OF STATE BY SIR ADRIAN SWIRE

2012

1. SIR ADRIAN SWIRE CAME IN TO SEE THE SECRETARY OF STATE TODAY. SWIRE EMPHASISED THAT ONE OR TWO OF HIS POINTS WERE VERY

SENSITIVE: I AM THEREFORE REPORTING IN THIS CHANNEL.

2.

IN HONG

SWIRE BEGAN BY TALKING ABOUT THE ECONOMIC SITUATION KONG. SWIRES TOOK A BULLISH VIEW AND WERE NOT AS WORRIED AS SOME BY THE RECENT POLITICAL TURBULENCE IN LEGCO. THE DEVELOPMENT OF SOUTHERN CHINA WAS A VERY GOOD THINK FOR HONG KONG (THE SECRETARY OF STATE AGREED) BUT INFLATION WAS A WORRY. UNLESS INFLATION COULD BE RESTRAINED, HONG KONG RISKED PRICING ITSELF OUT OF THE SERVICES SECTOR.

3 =

SWIRE SAID THAT HIS MAIN PURPOSE IN ASKING TO SEE THE SECRETARY OF STATE WAS TO UNDERLINE THE POINT IN HIS RECENT LETTER TO THE PRIME MINISTER (COPIED TO PS/GH) IE THAT CATHAY WAS A MAJOR BRITISH INTEREST AS WELL AS AN IMPORTANT PLAYER IN HONG KONG. IN ADDITION TO THE PROBLEMS FACED BY OTHER AIRLINES, CATHAY FACED TWO FURTHER UNCERTAINTIES: THE MOVE TO THE NEW AIRPORT: AND THE 1997 FACTOR, WHICH PARTICULARLY INFLUENCED RETENTION OF STAFF. MEANWHILE, HE KNEW THAT HMG AND HKG WERE WORKING ON THE PROBLEM OF ASAS.

4. THE SECRETARY OF STATE SAID THAT ALL CONCERNED HERE RECOGNISED THE IMPORTANCE OF CATHAY AND THEIR SUPPORT FOR BRITISH INDUSTRY: SWIRES' LETTER TO THE PRIME MINISTER HAD MADE THAT CASE VERY EFFECTIVELY. WE HAD IDENTIFIED ASAS AS THE NEXT PROBLEM TO TRY TO CRACK IN THE JLG CONTEXT. WOULD BE RAISING THIS WITH QIAN, AND WE HOPED TO HAVE INFORMAL TALKS WITH THE CHINESE FIRST. THE KEY POINT WOULD BE TO ENSURE THAT EXISTING RIGHTS TO TAIWAN WERE PROTECTED, AND THAT ON THIS BASIS THE ASA SEPARATION PROCESS SHOULD MOVE FORWARD.

HE

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CONFIDENTIAL

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