solved by a border liaison meeting between the Hong Kong

and Chinese authorities at which both sides exchanged views

on improving cooperation and resources to curb smuggling

between Guangdong and Hong Kong. Both sides stressed that

further liaison would help to curb smuggling activities and

contribute to the peace and good order of the Hong

Kong/Guangdong border. Mrs Booth may also be interested to

hear that Hong Kong's controls to counter smuggling have

recently been strengthened. These include restrictions on

the engine capacity of speed boats with outboard motors

which can be used in Hong Kong waters and licensing

conditions which mean that they may only be used between

sunrise and sunset.

Francis Maude

ALMACJ/2

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