On January 8, 1980, the long Kong and Macau Work Group" was formally

inaugurated. It is said that the Director is a former veteran cadre

of the Foreign Affairs Office. He is a member of the Central Committee,

experienced in working in the white area and was once an assistant to

Chou En-lai. Furthermore, a former high-ranking military officer from

the Internal Liaison Department of the CFC Central Committee has been

appointed as the group's political adviser, With such a leading

body, the work group does carry weight.

Talking on Work on Hong Kong and Macau, Deng Xiaoping Says amewar of

New Territories Lease is Impossible

Work on Hong Kong and Macau in the 1980s has entered into a new era.

Approval has been given for Guangdong and Fujian Provinces in the neighbour-

hood of Hong Kong to be designated as special zones. This is done to

strengthen foreign trade and to attract Hong Kong and foreign businessmen

to invest and set up factories in Guangzhou, Shantou, Fukzhou and Xiamen

in a bid to accelerate the four modernisations. Shenzhen, Shekou, Zhuhai

have also been set up as special processing districts. The intention of

the Central Government is to extend Kowloon and the New Territories to the

neighbouring regions like Namtou and Shekou to enable Hong Kong and British

consortia to invest in Shenzhen so as to gradually remove the psychological

apprehension of the expiry of the New Territories Lease in 1977. During

a visit to Britain in October last year, Chairman Hua Guofeng openly

talked about protection for interests of foreign investments in China

and it is obvious that he meant to ask foreign and Chinese investors not

to worry

It is learnt that at the inaugural meeting of the Hong Kong and

Macau Work Group in January, Deng Xiaoping was present and he

gave some important directions.

He talked concisely on three problems.

/Firstly, on

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