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CONFIDENTIAL

FM PEKING

TO IMMEDIATE FCO

TELNO 1780

OF 040303Z NOVEMBER 88

CONFIDENTIAL

/ copy to Vbpple,

refars 12+13. The buck time.

INFO IMMEDIATE HONG KONG, UKREP JLG HONG KONG

FROM GOVERNOR.

MIPT:

8/11

(194

110060 MDHIAN 0178

MED 243/5

MY VISIT TO PEKING: TALKS WITH ZHOU NAN ON 3 NOVEMBER:

HONG KONG GENERAL.

My u и

1. I GAVE ZHOU A BRIEF REVIEW OF RECENT EVENTS IN, AND AFFECTING, HONG KONG, HE EXPRESSED APPRECIATION FOR THE LONG TERM

INFRASTRUCTURAL PROJECTS UNDER CONSIDERATION: AGREEMENT NOT TO HOLD AN EXPO IN 1997 OR 2001: NEED TO MAINTAIN CONFIDENCE, STABILITY AND PROSPERITY : DESIRE FOR FURTHER COOPERATION BETWEEN HONG KONG CHINA IN ECONOMIC AND OTHER FIELDS : AND NEED TO SOLVE VIETNAMESE REFUGEE AND BOAT PEOPLE PROBLEM.

DETAIL

2. AFTER INTRODUCTORY COURTESIES, AND BEFORE ASKING ME TO SPEAK FIRST, ZHOU THANKED ME FOR THE ASSISTANCE WHICH HKG HAD EXTENDED TO THE CHINESE JLG OFFICE IN HONG KONG SINCE ITS MOVE THERE.

·

3 I SAID THAT I WAS PLEASED TO HAVE KE ZA ISHUO IN HONG KONG AND TO BE ABLE TO GIVE HIM ALL THE HELP WE COULD. I WANTED FIRST TO GIVE

ZHOU A BRIEFING ON THE SITUATION IN HONG KONG GENERALLY.

4. I HAD JUST RETURNED FROM A VISIT TO A NUMBER OF EC COUTRIES WHERE I HAD TOLD PEOPLE THAT HONG KONG'S ECONOMY WAS DOING VERY WELL. THE ECONOMY HAD BEEN OVER-HEATED BUT WAS NOW SLOWING DOWN TO AN ANNUAL GROWTH RATE OF ABOUT 6 PERCENT. WE HAD MANY INFRASTRUCTURAL PROJECTS IN THE PIPELINE WHICH WOULD BE LAUNCHED OVER THE NEXT FEW YEARS (EG NEW AIRPORT,

(EG NEW AIRPORT, EXPANSION OF CONTAINER PORT, ENVIRONMENTAL AND ROAD PROJECTS ETC). WE WERE PLANNING LONG TERM AND WELL INTO THE NEXT CENTURY.

5. THERE HAD RECENTLY BEEN MUCH DISCUSSION IN HONG KONG ON THE POSSIBILITY OF HOLDING AN EXPO IN 1997. WE HAD DECIDED IT WOULD BE

PRIORITY WRONG TO SUBMIT AN APPLICATION TO HOLD SUCH AN EVENT. SHOULD BE GIVEN TO MAJOR PROJECTS OF THE SORT I HAD JUST MENTIONED, DESPITE A GOOD DEAL OF ENTHUSIASM FOR THE IDEA IN HONG KONG, WE

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CONFIDENTIAL

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