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the city. Guangzhou needed an international airport but this

would require such a huge investment that the province could

not fund it without assistance from the state. Foreign

investment could be problematic. There were therefore no

definite plans for a new airport.

9.

Mr. Clift said Hong Kong Government was also engaged

in much long-term planning. Some projects had implications

beyond 1997 and also implications for economic relations with

Guangdong province. Hong Kong Government's planning had to fit

in with that of Guangdong.

Mr. Clift mentioned the briefing

given to Ambassador Ke Zaishuo by the Acting Governor on

developments in Hong Kong. He expressed willingness to arrange

such a briefing for Mr. Yang when next he visited Hong Kong.

In particular he thought the road links connecting with the

super highway would be of interest. In planning the alignment

and capacity of these roads it was necessary to know the

projected usage for the super highway on the Chinese side. It

was helpful, therefore, that arrangements for liaison between

the two sides on traffic projections were going ahead.

10.

Mr. Yang agreed that it was helpful for engineers to

exchange information and review construction progress on

projects. The long-term plans were good for Hong Kong's

prosperity and stability. In the long-term it was also

necessary to consider the question of energy. The Daya Bay

nuclear power plant, which would be completed around 1990,

would increase the power supply by two million kilowatts.

CONFIDENTIAL # #

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