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4. GU MU SAID THAT HE ENTIRELY UNDERSTOOD THE PROBLEM. THE SOONER A SOLUTION WAS FOUND, THE MORE BENEFICIAL IT WOULD BE TO HONG KONG'S STABILITY. BOTH SIDES HELD THE SAME VIEWS ON THIS QUESTION. ONE **COMMON RULE' WHICH SHOULD BE OBSERVED WAS, AS ZHAO HAD SAID TO THE LPS, THAT BOTH SIDES SHOULD REFRAIN FROM ANY ACTIONS OR WORDS WHICH WERE NOT BENEFICIAL TO THE PROSPERITY OF HONG KONG.
5. FS AGREED AND SAID THAT HONG KONG WOULD CONTINUE TO MAKE LONG TERM PLANS FOR THE FUTURE. THE PROSPECTIVE NUCLEAR POWER STATION WAS ONE EXAMPLE OF LONG-TERM PLANNING.
6. GU MU SAID HE AGREED WITH THIS VIEW. CHINA WAS ALREADY **CARRYING OUT SOME BIG PROJECTS IN ACCORDANCE WITH ITS ORIGINAL PLANS''. GUANGDONG NUCLEAR WAS ONE EXAMPLE. AS SOON AS THE FEASIBILITY STUDY WAS FINISHED, "WE WILL BE IN TOUCH WITH YOU FORMALLY''. ANOTHER EXAMPLE WAS THE HONG KONG TO GUANGDONG HIGHWAY PLANNED BY GORDON WU. THIS PROJECT WAS BEING 'STEPPED UP''. BOTH SIDES SHOULD TELL THE WORLD THAT WE WERE COOPERATING WELL AND THAT OUR COOPERATION WAS BASED NOT JUST ON SHORT TERM BENEFITS BUT ALSO ON
LONG-TERM STRATEGY.
7. FS SAID THAT HONG KONG WAS GRATEFUL FOR THE HELP THAT GUANGDONG WAS GIVING OVER WATER SUPPLY. GU MU REPLIED THAT WE SHOULD CONTINUE TO STRESS OUR COOPERATION. WE SHOULD MAKE ACTIVE PREPARA- TIONS FOR PROJECTS TO BE UNDERTAKEN''. THE GWNERAL SITUATION WAS VERY GOOD. COOPERATION BETWEEN HONG KONG AND MACAO ON THE ONE HAND, AND THE SEZ'S AND GUANGDONG AND OTHER PROVINCES ON THE OTHER HAND SHOULD CONTINUE.
8. INVITED BY GU MU TO ADD MY VIEW, I SAID THAT THINGS WERE INDEED
GOING VERY WELL AT THE MOMENT. HMG ATTACHED GREAT IMPORTANCE TO
COOPERATION BETWEEN HONG KONG AND CHINA. BUT WE SHOULD ALSO THINK
OF THE FUTURE. AS THE FS HAD INDICATED, THERE WAS NOT MUCH TIME
LEFT TO SOLVE THIS IMPORTANT QUESTION.
9. THE MEETING THEN ENDED.
10. COMMENT FOLLOWS.
CRADOCK
LIMITED
HD/HK & GD
COPIES TO:
SIR E YOUDE
!
HD/FED
PS
PS/LPS
PS/MR LUCE PS/PUS MR GIFFARD MR DONALD
[NOT ADVANCED]
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