2
11.
12.
Is the transmission system connecting the Guangdong and Kowloon distribution systems to become the umbilical cord necessary to keep the Status-Quo of Hong Kong alive?
Assuming the PRC wished to keep the door open without direct negotiations for renewal of the lease, what is the likely course they would follow?
The answer could be any one or more of the following :
a.
Encouragement to residents of Hong Kong and small industries to estbalish over the border.
13.
14
b.
PRC investment with Hong Kong interests in housing, land, and industrial projects.
c.
J
Two or three jointly owned very large Government sponsored projects the NPS could fall into this category.
I believe equity capital could be found if political expediency takes priority over cost. .
Off-shore oil contracts could well be used as a precedent.
Is the PRC's basic objective a desire to strengthen the relationship between themselves (PRC) and a Hong Kong enjoying its present status or is the idea to cloud the issue by suggesting a PRC registered company under laws which as yet have not been promulgated?
Note : It is expected that a code of Company law
will be available within the next few months.
LK: yy
3rd July, 1980.