RESTRICTED
3.
7. Mr LU said that the rate at which the number of tourists could be Increased from 1979/81 would depend upon the speed at which new hotels could be built. Some Hong Kong Companies were hoping to help build hotels in China. They were waiting for an answer from the Chinese side and some were complaining of the long time they had to wait. One of the reasons for the delay was that the city plans in some towns were not yet complete. There were difficulties of supply of utilities and the need to ensure that new high buildings did not destroy the atmosphere of beauty spots.
When city plans had been completed the Chinese would be able to accept outside help in building hotels. He asked the Governor to explain these problems to the Hong Kong companies.
8. In response to a question from the Governor, Mr Lü said that decisions might be taken as soon as the first half of this year. In Peking it was planned that 10,000 extra rooms should be provided. Feking was the most important centre because most visitors to China, especially on their first trip, wished to come to Peking but hotels were also to be built in Shanghai, Guangzhou, Guilin, Hangzhou, Nanjing, Suzhou and Xian. There were other places to be developed e.g. Sichuan Province and places further West; Xinjiang, Gansu and Tibet. Many people climbed the Himalayas in Nepal and there had been a very large number of applications for people to do so in China.
9. Travel and tourism had only become part of regular central government work last year. The General Administration of Tourism and Travel of China had been established both with a view to increasing understanding of China through visits and also to earn foreign exchange to help modernisation. Nowadays tourists were coming to China with plenty of money but they were unhappy because they could not find ways to spend it. His purpose was to make them happy by letting them spend more. The Governor said that he was sure there were people in Hong Kong who could help teach the Chinese how to encourage tourists to spend more money. Hotels were not just beds as some people thought but were a complicated arrangement designed to persuade travellers to spend a lot of money, but of course they must be kept happy and enjoy doing so.
10.
Mr Lu said that tourism was only 20 years old or perhaps a little older but had developed very rapidly during the last few years.
He had read an article where it was foreseen that by the year 2,000 the tourist industry would be one of the most active industries. By then Hong Kong and China would need to cooperate even more closely. In the past all tourists tended to be from the moneyed classes but they now came from all walks of life and there was a broader base for the tourist industry.
11.
The Governor asked Mr Lt whether he might ask some specific questions. He would like to know for example whether the companies that were negotiating to help with the construction
RESTRICTED
/and