CODE 18-77

CONFIDENTIAL

Reference

the city's opportunities. Ding guessed that the majority of the population were now Mandarin rather than Cantonese speakers. What little I overheard of conversation in the town centre bore this out. The main problem is controlling access to the SEZ, Ding freely admitted, was corrupt practices on the part of police officers posted on the internal boundary between the SEZ and the rest of China.

11. In general, the SEZ appeared a lively and prosperous place. There is a great deal of construction under way, although apparently this is threatened by China's recent austerity measures. The city is, of course, conceived as an imitation Hong Kong and its citizens seek to emulate the Hong Kong they know from the TV or from Hong Kong tourists "people here look on Hong Kong as a paradise", Ding told me. In fact, it is a fairly good imitation, if not of Hong Kong then of one of the scruffier New Territories towns, and the further growth of this strange city must surely be in Hong Kong's interests.

1 June 1989

CC:

Micholas Damaca

N Cannon

Hong Kong Department WH 303

270 2657

Mr Voysey, FED

Mr Torrance, Security Dept

Mr Bunten, Assistant Political Adviser,

Hong Kong

CONFIDENTIAL

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