CONFIDENTIAL **

- 3

Hopewell Holdings and the Highway Bureau had reached an

agreement. Work would start on this section in Shenzhen later

in the year with completion of the section scheduled for 1988.

6.

The double-tracking of the railway from Shenzhen to

Guangzhou had been completed. The speed of the trains would

not be increased until 1 October 1987 to give the tracks time

to settle. The journey time would then be reduced from two and

a half hours to one and a half hours. Mr Zhang said two

factors affected the development of Guangdong province:

and communications. If these problems could be solved,

Guangdong would develop much faster.

energy

7.

Mr Clift agreed. He then asked about plans for an

airport in Shenzhen.

Интел

8.

Mr Zhang explained that the Chinese Government had

made plans for one a number of years ago. Many people asked

whether Shenzhen needed an airport. Since Hong Kong airport

would soon reach capacity and Guangzhou had already reached it,

he thought that an airport at a suitable location in Shenzhen

would be useful to all parties. The plan had been approved by

Central Government but the problem of where to locate it had

delayed the project for two years. Different departments had

held different views. There was still no decision. But in

principle it was agreed that the airport should be close to

Shenzhen and Hong kong. A new location had been put forward

G.F. 326

CONFIDENTIAL #3

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