CONFIDENTIAL 機密

52.

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The programme of infrastructural development in

Hong Kong should as far as possible keep abreast of demand from China generally and Guangdong in particular. Nevertheless, in view of possible resource constraints, priorities for development of infrastructural projects whether primarily to meet local demand or to improve links with Guangdong should continue to be assessed in terms of their costs and benefits to the community as a whole.

Conclusion

53.

Guangdong has achieved considerable economic success in recent years. This has been based largely on its proximity to Hong Kong and favourable policy treatment by the PRC Government. However, in many ways Guangdong's development trends, driven by the market, have gone beyond those envisaged or even intended by the Government.

54.

Hong Kong has played an active role in contributing to economic development in Guangdong to the mutual benefit of both places. The prospects are for continued mutually beneficial development in the future although Hong Kong will have to continue to take steps to ease the impact of rapid change.

55.

Insofar as Hong Kong Government is concerned, it should continue its efforts in facilitating product upgrading and innovating and economic diversification, in improving the educational standards and language ability of the workforce, and in improving infrastructural facilities, particularly those providing links with Guangdong. By maintaining its uniqueness while strengthening its position in serving Guangdong's development needs, the potential gains for Hong Kong

CONFIDENTIAL # 3

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