CONFIDENTIAL

was inseparable. If both sides tried to improve their economies, both would benefit. 90% of the people in Hong Kong were Chinese and 80% of these were Cantonese. All Cantonese wished to see prosperity on both sides. It was because of this common wish that both sides spoke in the same language and thought in the same way.

4.

The CS commented that, if there were things which Guangdong wished to ask of Hong Kong, the latter would do what they could to help. Mr Ren said this applied to Guangdong as well.

5.

The CS said that, in working out development plans, it was important to know what the other side was planning to do. The container terminal was a case in point. There was a plan to expand the existing facilities. A key factor was the extent to which China would wish to use the contain facilities of Hong Kong. Mr Ren agreed. He added that container traffic should go not only by sea but also by road and by train. The latter would be more convenient for certain of the people living in the province.

Political Adviser's Office, 16 March, 1981.

CONFIDENTIAL

2.

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