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ADALAH AL
CCONFIDENTIAL
(it)
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Cross Border Charges
Following the last CRC, I took the opportunity of my dinner for Lu Ping to speak tɔ Ji Shaoxiang of the NCNA about cross border charges. I asked him about recent press articles on the ownership of the station building on the Chinese side
at Lowu.
As for He said the State would be buying it. charges, Shenzhen and NCNA had wanted to impose them (as a means to recover some of the costs of the building) but Peking had killed this. I asked him whether this was a matter of
principle or practice. He said it was not a matter of principle; but there had been considerable concern about the public reaction were the Chinese side to impose a charge. I said that it was nevertheless quite possible that we would Ji did impose a charge when our new facilities were ready. not comment directly. He asked, however, whether there was not already a border charge included in the KCR rail fare to Lowu. I expressed some surprise at this concept (which was new to me). 2 In Shenzhen yesterday I was able to take up the subject again with Vice Mayor Zhen Xipei. On the building, contrary to Mr. Ji's line, Zhen said that no final decision had been taken. On the border charge, however, he said the same, this would not now be imposed on their side. I again alerted him to the strong likelihood that we would impose a charge when our new facilities were ready a few
dollars, say.
This should not be viewed as a tax; it was simply a way of recovering some of our heavy costs for new plant at the border. I added that what he told me came as a slight disappointment. I had been working on this subject and had established that the Hong Kong Government would, had
the circumstances
been suitable, have been happy to exchange ideas informally with Shenzhen about our respective plans. Mr. Zhen did not say anything further, other than to indicate that the Chinese concern was indeed with public reactions to a charge on their side.
He asked the same
CONFIDENTIAL
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