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13.
A brief reference was made during the discussions to the possibility of a through train service. Mr Lau was told that, while the Chinese I had long felt this would have advantages, they were
concerned at the security risks (passengers flinging anti-Chinese literature and bombs from the train). These worries seem rather far-fetched but Mr Lau was convinced that they have proved decisive and that no suggestions are likely in the near future for the opening of a through passenger train service. The hoverferry service will, of course, relieve much of the pressure for improved travel facilities for tourists, diplomats and businessmen.
Future Services
14.
Mr Lau was asked whether the HKYF would be interested in running a passenger and freight service between Hong Kong and Swatow. The purpose would be: a) to meet the needs of overseas Chinese of Chiu Chow origin visiting relatives (the present train service to Canton is very slow); and b) to help in plans for the development of Swatow as a light industrial base. This proposal has still to be cleared with Peking. (Mr Lau expects further news following is uncle's visit to Peking from 7 October for about 3 weeks) Mr Lau says there are no technical obstacles:
Ships of about 5,000 tons could be purchased second-hand in Europe and would be serviced in Swatow (which has poor port facilities) by ferries. If we can give the green light, Mr Lau believes that such a service could start next year.
There are no practical difficulties as far as Marine Department are concerned. It sounds an excellent idea.
15.
I am minuting separately on other points of political significance. Mr Lau leaves for the United States tomorrow and plans to return on 6 October. Until then, he has asked me to maintain contact with Mrs Grace Ho, the Assistant General Manager of HKYF. I did not suggest that Mr Lau should call on you today since I thought you would prefer first to see a full account of his discussions in Canton. However, I told him that you had asked me to give you a full report. You may wish to telephone him to express your pleasure that the discussions went so well.
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(I C Orr)
Ag P A 14.9.78
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CONFIDENTIAL