RESTRICTED
DISCUSSIONS BETWEEN THE GOVERNOR AND SENIOR OFFICIALS : RELATIONSHIP BETWEEN HONG KONG AND THE NEIGHBOURING CHINESE PROVINCES OF GUANGDONG AND FUJIAN : ESSENTIAL FACTS
1. Hong Kong has traditionally traded with Guangdong and Fujian to obtain food, water and other supplies.
2.
Relationship has become more important in China's drive for
modernisation. These Provinces enjoy some economic autonomy.
They
regard Hong Kong as a major commercial centre, entrepôt and source of investment and technology, which can play an important part in their modernisation programmes. Foreign investors often use Hong Kong as a base for dealing with China. Hong Kong market also shop- window for Chinese provinces looking for foreign manufactures and
expertise.
Provincial authorities have extensive investments in
Hong Kong, and have established joint ventures with Hong Kong based
companies, in addition to those set up by national Chinese concerns.
3. Political cooperation is, of necessity, more limited, but issues of mutual importance, eg illegal immigration into Hong Kong, have been discussed between Hong Kong Government and Guangdong provincial authorities. Chief Secretary's visit to Guangzhou in March followed similar visit by Governor of Hong Kong in October 1980.
Hong Kong and General Department
March 1981
RESTRICTED