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serve as a period of transition from British to Chinese rule. At the time China planned to take total repossession of the British colony it aimed to take back Macau. Pai Shing said Mr. Liao also told the delegation that HK and Taiwan would become SARS with their own constitutions designed to keep their capitalist system; it said there would be no third SAR and did not mention Macau.
Shenzhen SEZ: The SCMP Business News carried a report from Xinhua which said Shenzhen SEZ had signed 113 investment agreements worth $230 million with foreign businesses in the first quarter of this year, 80 pc of which involved industry. Some were large-scale enterprises, including the manufacturing of concrete and glass, plus aluminium reprocessing works. There had been a significant increase in the number of enterprises from HK, Macau and other countries holding talks with Shenzhen zone officials. One of the signings was for a $100 million concrete production plant to be built by the Japanese. There had also been talks on petrochemical and oil support industries.
Ta Kung Pao Weekly Supplement: The TKP Weekly Supplement carried the comments the Governor made when opening a water sports centre at Sai Kung he saw no reason why people should become unduly gloomy or lose their confidence; there was also a report on the HK Trade Fair to be held in October and the welcome HK fashions had received in Japan. There was a report of the meeting between Mr. Liao Chengzhi and a trade union delegation from HK and Macau in Beijing on 1 May; the visit of Mr. Robin McLaren as the head of a HK delegation to Shenzhen last week was reported, as was the second stage of electrification of the KCR; the paper carried the remarks of the President of the C.M.A., Mr. Ngai Shiu-kit, urging manufacturers to devote greater effort to product innovation, and those of Mr. Stanley Au, managing director of the Forex Group of Companies, who said in order to help the HK dollar recover its strength the Government should raise interest rates and abolish interest tax.
UK press: The "quality" British newspapers carried reports of the Guangdong nuclear power plant, linking it to coverage of the visit of the French President to China. The Guardian said the project, which could symbolise the triangle of friendship between London, Beijing and HK, was beginning to run into problems even before any agreement was signed; local industrialists were protesting strongly about the potential cost of this source of power, and the Government was forced into saying that it would buy electricity. from Guangdong only if the cost was no higher than that provided by oil or coal-fired plants. The Daily Telegraph and Guardian carried reports of the problems facing HK due to the influx of Vietnamese refugees. The Sunday Times carried a feature on the setting up of the ICAC and the writer strongly recommended setting up a similar watchdog body in the UK, conceding that this would be highly unlikely. The Financial Times reported optimistic statements and intervention halting the slide in the value of the HK dollar against the US dollar which had been occurring over a period of several weeks.
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