- 4-

sink.

Lu clearly took the point. He asked whether

the Hong Kong Government had now shelved its plans for a second

airport. CS pointed out that on the latest figures, Kai Tak

would be sufficient for many years to come. However we had

heard reports of plans for a Shenzhen airport. This was of

great interest. It might be that this could take care of

Hong Kong's needs, at least in respect of local traffic.

We needed to know more. Mr. Boyd said that early information

would help us to get our own infra- structure investment

decisions right in the northern New Territories. We had now

acquired a mutually beneficial habit of matching our border

projects with Shenzhen, as at Lowu and over the Shataukok

bridge/China Mountain tunnel. Mr. Li confirmed this; there

was also a need to upgrade the road to Mankamto.

7.

Mr. Boyd expressed satisfaction at daily conduct of

cross border relations. The system worked well. There had

been enormous growth in passenger traffic in the last ten

years and the experts on both sides coped well with holiday

bulges. There were of course some financial constraints.

no consultant, ten years ago, would have predicted 20-30

million in 1985. CS underlined the scope of current cross

border movements and the Hong Kong Government's satisfaction

with their management. Hong Kong would, as he saw it, be

a close economic partner of Guangdong, in particular a key

element in the rapid'y growing prosperity of the whole

Pearl River Delta Recon, well into the next century. The

general trend added enormously to understanding of and good

But

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