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Peking view on this.

We shall at the same time need to tackle the question of what, if anything, is said to the Chinese Government about our own views on the Guangdong project.

30 July 1980

6. Morrice

f

P Morrice

Hong Kong and General Department

Sir K. Yayda

1 1

адие

with Mr. Morrice On Sir J. Caters

point about Chinex motives I am

that

inclined to

agree they probably put commercial and technological considerations first. But in that the whole strategy of economic development of Guangding clearly has political njnificance in

their minds they

cam

hardly have failed to take much int account fum the start

this pisut very I their discussions with

2. Therefore there is

Сыр.

no reason to doubt mar

KEC mean what they say

about the potential

political importance of the scheme to Hry Kay (This

Ame

out in a recent discussin between the

cheef Chinese negotiator and Stimes I CLP) But I do not see it as the 'ping-pong' first step to an imminent solution of the problem.

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