SECRET
validity lasting only until June 1997. As the time of the leases shortened the clock ticked away. This would deter the sort of · investment Hong Kong wanted (though not perhaps speculative investment). It was the subject of speculation. The Governor said that the matter was not relevant to the Chinese position on Hong Kong, but it increased his own problems. He had thought of" some thing which he could do to solve the problem and which was not
If this problem contradictory to China's well known position. could be solved, the right sort of investment could be attracted
This would be of to keep Hong Kong competitive in world markets. benefit to China as well as to the UK.
J
5. Concluding his opening remarks, the Governor mentioned immigration, saying that too many people were coming with or without permits. For some people to come in was good, but a surfeit caused indigestion. He had discussed the matter in Guangzhou and thought that in principle the matter could be solved. with the Ministry of Foreign Affairs.
6.
He would pursue it
Deng Xiaoping said that the problem of people was fully understood. It could be solved in two ways. One was that China would adopt measures to reduce pressure on Hong Kong.
This did not
mean that she had not adopted measures; but the results had not been On the other remarkable, and more effective measures would be taken. hand it would be advisable for private investors to put more money into Guangdong and raise living standards there so that it was not
The Governor commented necessary for people to go to Hong Kong. that he had discussed investment in Guangdong and considered that. there should be some merging of interests between Hong Kong and Guangdong. Deng Xiaoping said that this assistance could adopt many forms: investment, joint ventures or compensation trading. There would always be some gap between Hong Kong's living standards and that of Guangdong; but it could be narrowed. The question could only be solved with the realisation of China's four modernisations. But part of the problem could be solved now. near Hong Kong saw that the gap was too big, and it was natural for them to go, even without permission. Time was needed for the four modernisations. China had a big population problem and the management of 900 million people was more difficult than that of
People
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