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Original at: KK 026|11

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CONFIDENTIAL AKK 341li

CENT

5.

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46

KENTAL NA RAMAT NO. 1 22.ARR1991

PA

This Copy for: Information only / Action on Record of CathersatuEconomic Zones and the continuation of the open conce Phear about the increasing activities in the Special

between SilJ.cater policy. As for the question of improving-INDEX

production he would see what could be done to suggest

star ways of helping. On the export of electronic and ZENG DINGSHIelectrical goods, he noted that there should be a market

for such products but it was important to remember that making such goods required a sophisticated labour force. When Vice-Premier Huang Hua had been in Hong Kong he had said he wished to see more sophisticated industries in the Special Economic Zones. We agreed. Industries,

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Action Taken

however, would only go there if they had available a skilled labour force. On the nuclear project he noted with pleasure that the feasibility report had been approved by the provincial authorities. The Hong Kong Government was fully behind CLP in their talks with Guangdong. They were in favour of such large-scale co-operative projects providing of course that the supply of electricity was economic in comparison with producing it locally and also that supplies were assured. He would like to reaffirm the Hong Kong Government's interest in, and commitment to, the project. This was a commitment which was also held at the highest levels in the UK. This had been said by Mrs Thatcher to Vice-Premier Huang Hua in October last year.

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10.

As for the suggestion of helping with construction projects in Hong Kong, the CS noted with interest what had been said about explosives technology. It should be remembered, however, that sending construction workers to Hong Kong would be difficult because Hong Kong already had an unusually high unemployment rate of 3.9%. If those concerned were skilled labourers with skills not available in Hong Kong, then it might be easier.

Separate points raised by Hong Kong

11.

The CS went on to say that he would like to raise, and deal briefly with, a series of disparate points.

(i)

(ii)

Illegal immigration. Hong Kong was very grateful for what had been done on the Guangdong side. It was too early to talk about success, but the number of illegal immigrants had dropped greatly. Things seemed to be going well. He wondered how the Guangdong side saw the situation. Mr Zeng said the situation was good and they were hopeful about the future. Mr Lin added that they had always been against people leaving illegally. They had not relaxed the measures they were taking against this.

Legal immigration. The CS said this was still a problem. The difficulty was that visitors did not return. It had earlier been said by the Chinese that permits would be limited to three months. But this did not appear to be happening. Mr Lin said they had considered this matter and were

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CONFIDE CIAL

/contd.

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