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sufficiently advanced to allow operation of a 'pilot service' of three outward and three inward coaches each day. The pilot service will be run to three destinations in eastern Guangdong: Shantou (more than 160 miles from Hong Kong, but the site of a Special Economic Zone and developing tourist area); Hizhou (some 60 miles north of Hong Kong); and Xingning (some 160 miles northeast of Hong Kong.)

13.

According to press reports, other destinations in Guangdong will eventually include Chao'an, Puning, Haifeng and Danshui in eastern Guangdong as well as Guangzhou, Dongguan and other cities. The continued delay in the inauguration of a service to Guangzhou was caused by delays in the construction of the Hong Kong Guangzhou highway 'because many Chinese workers on the project defected and sneaked into the Colony as illegal immigrants'.

The Media

14.

The three local communist film production units and associated studios recorded operating costs of HK$9.73 million last year against theatre takings of HK$6.86 million. The deficit is an increase of some HK$1 million over the 1979 figure.

15.

April.

The Guangzhou Daily went on sale in Hong Kong on the 1st Initial impressions are that its unattractive format and

content do not appeal to local readers.

1

G.F. 316

United Front

16.

The NCNA recently discussed a directive from Beijing regarding

the cultivation of well qualified persons of value to China such as engineers, artists and sports personalities who had left China during the time of the 'Gang of Four' with a view to winning them over to

return to China or at least look upon China favourably.

It was

agreed that sime the NCNA does not have a lot of funds the best way to comply with the directive was to use their various contacts to

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