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the External Trade Centre Hotel was about as close as

Chinese hotels get to international standards. The airport has

not been upgraded (but should be under the seventh five year

plan), and can take nothing larger than a 737. Check-in is

chaotic.

General. Fujian is a run down province with poor

access to the outside world and to the rest of China. It is

trying to modernize quickly, and has no inhibitions about using its strong overseas Chinese connexions. External trade has

tripled since 1980. Hong Kong is the main partner. There are

now 840 joint ventures; most interlocutors estimated that Hong

Kong parties were in on well over 70% of these. Consumerism is

much in evidence. The markets in Amoy and Fuzhou are lively.

Western style clothes, tee-shirts with meaningless writing on

them are everywhere. If the wind has turned against such

influences, the people in Fujian have not yet got the message.

Mao was mentioned twice by our guides in each case as part of

a joke. Everyone was relaxed about Taiwan; Quemoy was pointed

out to me with much amusement. I was told incidentally that

direct trade with Taiwan had fallen back somewhat from a high

point in 1985, reason unclear.

8.

Vice Governor Chen Bin Fan. Received us for forty

minutes on 7 March with T.V. cameras in attendance. Asked me

to pass Governor Hu Ping's regards to you and to the Acting Governor. In what was clearly a rehearsed statement, he drew

attention to recent statements by Zhao Ziyang that the "open

door" and "one country, two systems" policies would not be

affected by recent changes. He spoke warmly of Hong Kong's

close links with Fujian, and said that Hong Kong's continued stability and prosperity were essential for Fujian's

development.

CONFIDENTIAL

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