CONFIDENTIAL
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and would do no good either for Hong Kong's image or for China's reputation. SHA confirmed that there would be a strong local reaction if this was done.
Mr Wang intervened to say that, as long as China agreed to accept people back, Hong Kong had nothing to worry about.
5.
Mr Wang went on to say that the scale of the problem was the result of ten years of mistaken policies under the 'Gang of Four'. This was why it was taking so long to bring the situation under control. The problem in 1962 had been solved more quickly. That was because there had then been only two years of mistaken policies in 1958/9.
6.
There was also the question of ensuring that those who organized illegal departures were returned to China when they were found in Hong Kong. PA said that we did all we could to track down those who had broken the law here and bring them before the courts. If they had broken the law in China it was possible to apply for extradition. To do so it was essential that prima facie evidence be presented in court by people from China. In the past it seemed this had not been possible. Mr Li said that it was possible, but the Chinese side were worried that an application would be rejected, resulting in much unfavourable publicity. The Governor said the courts were independent so results could not be guaranteed. That was a risk which
the Chinese would have to consider. It was not possible for him as Covernor to alter the legal rules of extradition. However, it should be possible to choose a test case in which there was good reason to believe that extradition could be granted. It was important that the first case of this sort should not fail. PA said we would be happy to help advise on any case of extradition which the Chinese side wished to take up to ensure that the first one went as smoothly as possible.
Nuclear Power Station in Guangdong
7.
The Governor referred to plans which were being discussed between China Light & Power and the Guangdong authorities for a nuclear power plant to be built on the Nan Tou peninsula which would sell some of its electricity to CLP. This was an excellent example of a major co- operative project which would bring benefits to both China and Hong Kong. There was no room for such a plant in Hong Kong and the proposed site was ideal since the smoke from it would be carried out over the Pearl River estuary. Sir Laurence Kadourie's discussions with the Chinese authorities had the blessing of the Hong Kong Government. Mr Li said he was pleased to hear this.
Economic Relations with Guangdong
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General
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