17. I SAID THAT ALL THESE IDEAS WERE WELCOME IN PRINCIPLE AND WEP BEING AND NO DOUBT WOULD BE FOLLOWED UP BY THE PRIVATE SECTOR · U..'A
A BASIS OF COMMERCIAL JUDGEMENT. IF ANYTHING INVOLVED OFFICIAL PROBLEMS THEY COULD BE DISCUSSED BUT I DID NOT FORESEE ANY REAL. DIFFICULTIES. I MENTIONED THE NEED TO ENSURE THAT THE REQUIREMENTS OF CERTIFICATES OF ORIGIN WERE MET IF JOINT PRODUCTION FOR EVENTUAL EXPORT FROM HONG KONG WAS INVOLVED.
18. DO SEE SCOPE FOR DEVELOPMENT OF JOINT PRODUCTION. BUT ALL THIS OF COURSE IS A MATTER FOR THE COMMERCIAL JUDGEMENT OF THE PRIVATE SECTOR.
19. I SHOULD SAY THAT I CONTINUALLY STRESSED THE POINT THAT THERE WILL BE NO ADVANTAGE TO CHINA IN DISPLACING HONG KONG PRODUCTS IN THIRD MARKETS. THE VALUE OF THE INCREASE IN CHINESE EXPORTS TO THIRD MARKETS WOULD SIMPLY BE OFFSET BY THE DECREASE IN PROSPERITY AND PURCHASING POWER IN HONG KONG AND THEREFORE OF CHINESE EXPORTS TO IT. WE COULD BOTH PROFIT ONLY BY CONSIDERING: OUR MUTUAL BENEFIT.
20. IN RESPONSE TO CHINESE EXHORTATIONS FOR GREATER ECONOMIC COOPERATION AND THE GREATER DEPLOYMENT OF HONG KONG'S INDUSTRIAL, COMMERCIAL AND FINANCIAL CAPABILITY FOR THE MUTUAL BENEFIT BOTH OF CHINA'S MODERNISATION PROGRAMMES AND HONG KONG, I STRESSED THE UNIQUE CAPACITY WHICH HONG KONG AND HER BUSINESSMENT POSSESSED AND THE VERY GREAT CONTRIBUTION THEY COULD MAKE GIVEN COMMERCIALLY ATTRACTIVE CONTRACTS, SECURITY FOR INVESTMENT AND REASONABLY QUICK DECISIONS.
21. WE WERE BRIEFED IN DETAIL BY THE GUANGDONG WATER ENGINEERS ON THEIR LATEST THINKING ON HOW TO SOLVE OUR NEED FOR INCREASED WATER SUPPLIES AFTER 1982. THEY HAVE DONE A LOT OF WORK ON THIS AND THEIR ALTERNATIVE NEW SCHEMES WHICH WOULD SERVE BOTH THEIR NEED FOR IRRIGATION AND OURS FOR WATER ARE IMAGINATIVE AND IMPRESSIVE. THEY HOPE TO BE READY TO PUT PROPOSALS TO OUR OWN ENGINEERS IN SEPTEMBER. I FOUND THIS VERY ENCOURAGING.
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/22. I