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thing but vitiated by unequal provisions on the judicial authorities of consuls, customs duties etc.

41.

At a meeting with a delegation of Hong Kong's Yan Chai Hospital visiting

visiting Peking, Lu Ping reaffirmed PRC willingness to agree to increases in land allocation as needed, in order to help dampen property prices. He added that HKG should take measures to deal with other causes of rising property prices.

Ji Pengfei also received the delegation and commented that the persons elected in the recent direct elections were "not true democrats, but were radical democrats" and that they "could not represent the views of the great majority of Hong Kong people".

He called on the majority of Hong Kong people to "unite, get organised, uphold Hong Kong's long-term prosperity and stability, and participate in affairs", adding that "conditions could be different at the time of the 1995 direct elections" (WWP 29 Oct).

Guangdong

42.

After opening Shenzhen airport, Li Peng had a briefing from Zheng Liangyu and other municipal officials, and paid a visit (his 9th) to the nuclear power station site at Daya Bay. He then went on to Guangzhou where he opened the trade fair and, among various other activities, met senior officers of the Military Region, local Public Security and Armed Police Forces.

43.

Li commented that Shenzhen's development further demonstrated the correctness of Deng Xiaoping's policies on special economic zones and that it played the role of a "window of the superiority of socialism". He called on Shenzhen to concentrate on technologically advanced forms of production.

44.

In discussions with provincial officials, Li said it was extremely important to improve the performance of large and medium-sized state-run enterprises, adding that both those under the mandatory planning system and those operating according to market regulation should be responsible for marketing their own products and that those whose products were unsaleable should be closed, caused to stop production, merged or switched to making different products (guan ting bing zhun).

45.

"development

to

of

He

Li went on

refer to the importance and stability" in the countryside. complimented Guangdong on its achievements in "socialist civilisation" as well as in reform. In a carefully phrased passage, he added that, while the central authorities had decided on the Pudong scheme in order to make use of the economic and technical potential of Shanghai, they still hoped for bigger and better results from the coastal open areas and zones "on their present basis". (Comment: This seemed to be an attempt to reassure local opinion of the continuing interest, while indicating that the

centre's

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