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Meanwhile, Mr. Liang said Guangdong welcomed overseas Chinese and compatriots from Hong Kong and Macau to set up schools there.

Commenting on the Guangdong Provincial Party Committee reshuffle, Wen Wei Po in an editorial stressed that the economies of Guangdong and Hong Kong were inter-dependent. Fast-developing Guangdong was a vast investment market for the territory. The paper expected the two places would further promote their bilateral economic relations in the years ahead in order to uphold their prosperity.

8.

ENGLISH-LANGUAGE PRESS:

The Governor in London: The Governor's visit to London was factually reported by the English-language newspapers. The SCMP said on 12 March that HE's two meetings with Mrs. Thatcher were seen as evidence of the importance she attached to a successful outcome to the 1997 issue. The coverage of Sir Edward's return played up the point that he was once again tightlipped. The Standard on 11 March said the return of Sir Edward and Sir Percy to Downing Street on Wednesday for a second call on the PM surprised some observers, but unofficial Whitehall sources felt, however, that the complexity of the subject inevitably required close contact at that level. A SCMP editorial on 9 March said that while it was not possible to say that China had visibly changed its stance in the six weeks since Sir Edward was last there, a number of developments had occurred. The Post had already noted HK's calmer attitude with its implicit recognition that there would be no early agreement, but this was not necessarily a bad thing. There had also been a modification of the somewhat shrill reactions of Beijing's advocates. Not that this betokened a change in substance, but it did nevertheless reflect a wish by all sides to 'cool it'. Changes in personnel who might be involved in the negotiations on the Chinese side were another new development, a sign that Beijing was taking great care to choose the right team.

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China becoming impatient: The SCMP on 11 March reported that China was planning to take back sovereignty later this year because it was becoming so impatient with Britain's insistence on the treaties governing HK. The Post was picking up a report in the Oriental Daily News, which said it had received it from travellers arriving from China who in turn, had heard it from cadres. A confidential document was said to be circulating among middle-level cadres in China. The Post said the pro-Taiwan HK Times also received a similar report, but a spokesman refused to reveal the source. Both papers were treating the report cautiously and Government officials were unwilling to comment because of the dubious sources.

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The SCMP on Saturday carried a follow-up. It started by saying the Taiwan authorities had declared that they would come to the aid of “Hong Kong compatriots” in their fight to protect their “right of freedom” and they were also to set up an advisory sub-committee here to liaise and strengthen work with various local groups. The declaration was made by the Overseas Chinese Federation for National Salvation, an organisation under the Kuomintang, and observers said this was the first time Taiwan had made an official announcement tantamount to declaring that it was taking part in the resolution of the

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