TNAG-2767-FCO40-3984-Hong-Kong-and-the-media-interviews--press-briefings-and-the--1993 — Page 16

However, like so many things here, the project has not been without controversy.

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by far and away the lwycol viement of the work is rör à new airport. Its construction has become a target in the row between London and Beijing. The Chinese say it will be too expensive. But Hong Kong's Government denies that and says it will move ahead with the proposals as scheduled. The capital developments are vital.

UP ENGSOT AT 11.16 JAMES BLAKE, SECRETARY FOR WORKS, HONG KONG GOVERNMENT

"You've got the Guangzhou region, the Cuandong province and the Pearl River Delta; twenty eight million population now, which is again expanding. Ten percent growth annually. And the infrastructure demands for that region themselves are tremendous. And, of course the manufacturing facilitics are - moving in and out through Hong Kong. So, Hong Kong is reverting to its traditional role as an entrepot port. And the whole of the infrastructure in Hong Kong is to be upgraded to meet this challenge.

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But as these developments Lake place, what will that mean for Hong Kong?

UP ENGSOT AT 12.15 PHILIP BOWRING, FINANCIAL JOURNALIST "I think you're going to see an increasingly porous border in economic terms as you see an increasingly porous berder in political terms. And, yes, there is a lot of money to be made in China by Hong Kong-owned business. On the other hand, I think there is quite a threat to lower to middle income groups from what is happening here, both economically and politically,"

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But is the opening up of the border a threat or an opportunity? With Hong Kong's chronic inflation problem, what can business people expect to find in China?

UP ENGSOT AT 12.53 RICHARD T.STIRLAND, DIRECTOR OF CORPORATE DEVELOPMENT, CATHAY PACIFIC AIRWAYS "We're very actively involved in investigating invost ment in mainland China for two reasons: I mean, one, we see it as an opportunity for making profits, which is a normal activity; but also, we are concerned about the high level of inflation in Hong Kong and it is imperative that we seek out places where we can achieve lower costs for certain aspects of our operation. Such as some of the administrative and accounting functions and also, most imporatantly, the overhaul and maintenance of our aircraft."

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If there are so many opportunities waiting over the border, it might seem strango to be uncatting things now. Afle, century and a half, why should Britain be interested in proposals on democratic reform ? Surely it's a bit late in the day for that?