small margin, and has become the fourth largest market for Hong Kong's domestic exporta. China has always been the largest source of re-exports through Hong Kong, now it is the largest I market for such re-exports.
26.
►
On
Outside the trade field, OUZ economic relationship
with China extends over
You are a wide range of activities. all aware of the agreements we have reached with the Guangdong authorities for an increased long-term supply of water to Hong Kong which is perhaps
perhaps the best
the best known example of cooperation
between Kong Kong and
Those Guangdong.
agreements have required major works on both sides of the border, with china- based construction companies winning significant public worko contracts in Hong Kong. I have seen at first hand some of the investments by our manufacturers and entrepreneurs in the Special Economic Zone in Shenzhen and also in Guangzhou. the other side of the coin is the steadily growing investment by China-based companies in Hong Kong, In particular, welcome the participation of the China Resources Company in the Tia Shui Wai development and the decision of the Bank of China to make a major investment in building a new Head Office in Central. This strengthening of our economic ties with China has been matched by a rapid expansion in the network of air and sea linke with Chinese cities. The agreement signed with the Shenzhen authorities in April should read to a parallel improvement in communications across the land border.
27.
+
I
In this connection, I shoul8 also comment on the proposed Nuclear Power Plant to be established in Guangdong. Discussions between the People's Republic of China and other governments and companies with an interest in the plant are still continuing. The Government has agreed in principle to Hong Kong taking power from China provided that the cost is no greater than it would be if we provided the necessary fossil fuel based generating plant in Hong Kong. Should the Chinèse Authorities decide to build the plant near to Hong Kong we should have an interest in it, not only as a source of powez,
10
/but
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