布政司署

香港下亞厘畢道

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027/8

57

LAST PAPER

GOVERNMENT SECRETARIAT

LOWER ALBERT ROAD HONG KONG

本署檔號 Our Ref.: PA CR 1/4/5701/86

來函檔號 Your Ref.:

Miss A J K Bailes

3 December 1987

Enter + pa.

HRB 02718. Nunt

15 DEC 1987

MAL

lwin

British Embassy PEKING

Dear Alyor,

VISIT TO HONG KONG BY STATE COUNCILLOR GU MU

To round off the story in your telegram number 178, Gu Mu duly visited Hong Kong from 30 November to 3 December. We arranged an informal programme for him on 2 December, including a helicopter tour and a call on the Deputy to the Governor.

2.

The call on David Ford was mostly of a courtesy nature. There was some discussion of Chinese policy on the special economic zones. Gu Mu said that it was the intention to make Hainan into the fifth SEZ,

with more extended facilities than the existing ones. In particular it would be possible for investors to buy and sell leases on land. He hoped that development could get underway quickly, but the Chinese authorities recognised that economic development in Hainan, including infrastructure and services, was at a very low level, so things could take time. The Chinese had in mind that enterprises which were at present not developing successfully might be handed over to foreign investors for improvement. After a period they might be taken back by the provincial authorities.

3.

On Shenzhen airport, Gu Mu simply said that the project was intended to meet the needs of the special economic zone only. It was inconvenient for visitors to Shenzhen from within China to have to fly to Guangzhou and continue by surface route. For this reason the State Council had approved the project.

Imus

cc CO Hum Esq, HKD

Arch

R Cooper Esq, MVO, FED

CS

SLW

СПС

(R D Clift)

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