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right to respond to these moves both because of their tentative nature and because I saw no point in a purely touristic visit. An official invitation was, however, clearly different. It showed that the Chinese were prepared to make a major forward move in overt recognition of the Government of Hong Kong. both the Ambassador in Peking and I were convinced that it was a gesture which should not be rejected.
As such,
4. My second objective was to learn something about Chinese development plans and the way in which these might affect Hong Kong. There has been much lose talk about development projects across the border in Guangdong (Kwangtung) Province; many new middle men have sprung up in the heady atmosphere thus engendered; rumour has been rife and hard information scarce. I wanted if possible to hear direct from senior Chinese officials what their plans were; to put on record Hong Kong's willingness to co-operate in the modernisation programme where possible; and to point to one or two areas where there might be difficulties.
5. Finally, the invitation came at a time when we were already considering how to deal with a problem which is not yet acute, but which could become so over the next few years; the question of land leases in the New Territories which are at present all written to expire in July 1997. In conjunction with the Ambassador in Peking and the Department, we had worked out a method for dealing with this problem. It remained to find an appropriate means of telling the Chinese what we intended. My visit provided an opportune moment to take the first steps.
6. During the visit the Chinese made a point of giving us unstinting high-level treatment. In Peking we were received by Vice Premier Deng Xiaoping, generally recognised as the key figure in present Chinese politics, as well as the Foreign Minister, Mr Huang Hua, and by Mr Liao Chengzhi, a Vice Chairman of the National People's Congress, who plays a particularly important, although unpublicised, role in formulating Peking's policy towards Hong Kong and Macau, as well as our nominal host, Li Qiang, and others. Red carpet treatment elsewhere included a flight by a special Trident aircraft direct from Lanzhou to Guangzhou, arranged simply because the dates we had suggested did not fit in with scheduled air services. At the final banquet I gave in Guangzhou before returning to Hong Kong, Mr Xi Zhongxun (Hsi Chung- hsun), Chairman of the Provincial Revolutionary Committee
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