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officiate in Hong Kong. I see no political objections to your doing so. Indeed, in view of the importance which the Chinese attach to this new link (see para 12 below), I think it would be difficult for you not to do so. Mr Lau has asked for suggestions for guests at the ceremony and on the inaugural trip. He would like the diplomatic community in Hong Kong to attend. Subject to the views of D of P, I think this is a good idea.
Political Background and Implications
11.
Mr Lau has promised me a full list of those participating in the talks in Canton. Mr Tan Kan of NCNA attended all the meetings. The other participants were all from Kwangtung. However, Mr Lu Piing (7627/1627) was in Canton throughout the meetings as the personal representative of Mr Liao Cheng-chih. (I do not yet have any background details on him.) He met Mr Lau regularly at meals but did not attend any of the meetings. Mr Lau believes that all the crucial issues were referred to him.
12.
The Chinese told Mr Lau that the service was a "breakthrough" and a "major step forward" in relations between China and Hong Kong. They said it would serve four purposes:
(i)
(ii)
to increase contact between Canton, Kwangtung and Hong Kong;
to improve friendly relations with foreign countries (including meeting the complaints of diplomats in Peking about slow and inconvenient travel to Hong Kong);
(iii)
to help China develop its tourist industry;
(iv)
to help in the four modernisations.
Mr Lau believes that the service is a major personal initiative of Liao Cheng-chih, who attaches great importance to its success. Mr Lau was told that the Chinese preferred to deal with HYF because it provided a reliable contact with the Hong Kong Government. He believes that the Chinese are disenchanted with Mr Henry Fok and Shun Tak Shipping Company. However, he was specifically asked to avoid scoring points off Shun Tak in any publicity given to the service.
/contd...
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