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HONG KONG'S DEVELOPING RELATIONSHIP WITH GUANGDONG PROVINCE : ESSENTIAL
FACTS
1. Hong Kong has traditionally traded with neighbouring Provinces,
Guangdong and Fujian for food, water and other supplies.
2. Relationship has become more important in China's drive for
modernisation. These Provinces enjoy some economic autonomy, a sort
of restricted capitalism. They regard Hong Kong as major commercial
centre, entrepôt and source of investment and technology, which can
play important part in their modernisation programmes. Foreign
investors often use Hong Kong as base for dealing with China. Hong
Kong market also show window for Chinese provinces looking for
foreign manufacturers 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 co-operation, of necessity, more limited, but issues of
mutual importance, eg, illegal and legal immigration into Hong Kong,
have been discussed between Hong Kong Government and Guangdong
provincial authorities. In recent months has been close liaison on
border matters both control of immigration from China and plans for
relaxation of border controls on Hong Kong citizens.
High-level
First
visits in both directions. Most recently, Ren Zhongyi,
Secretary of Guangdong, visited Hong Kong in October and met officials
including the Governor. Also recently been negotiation over increases
in the amount of water supplied to Hong Kong from China.
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