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10.

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Page No. 4 of 9 pages

The head of the CITIC's Hong Kong office publicly denied the

report, which was continuing to circulate, that China was proposing a new

international airport near the border with Hong Kong (see para 14, December

1979 report).

11.

A second through train service between Guangzhou and Hong Kong was

due to start on 1 February 1980 but was cancelled at only three days notice with

no reason being given. In fact it seems to have resulted from bureaucratic delays

and every effort is being made on the Chinese side to start the service before

Chinese New Year.

12.

The Hong Kong and Yaumatei Ferry Co. have received permission to

run their existing hover ferry service to the centre of Guangzhou. The service

has hitherto gone only as far as Whampoa 20 kms. down river. The hoverferry

will fly the British flag throughout, something which had earlier caused the

Chinese some misgivings.

Propaganda

13.

The format of Hong Kong's communist Wen Wei Pao newspaper (with a

circulation of about 40,000) is to be changed in an effort to widen its

readership to all classes and boost circulation. Two new English language magazines are to be sponsored by the communists: "The Economic Bulletin", which will cover developments in China, and a travel periodical for tourists in China. The Guanghua Book Co. of London has suggested to local communist publishing

circles that they open bockshops in Europe.

United Front

14.

Over the New Year period Guangdong Province sent a football team to

Hong Kong to play against Hong Kong and the visiting Hamburg team. A tripartite

athletics meeting took place in Hong Kong between Hong Kong, Macau and Guangzhou.

i

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/ para 15

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