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HKMAO, State Council.
5.
I had an hour's meeting with, and then hosted a lunch for Mr. Ye Xingping and Mr. Zhou Bo of the HKMAO. Both are Division Chiefs under Chen Zuo'er, Ye dealing with HK politics,
Zhou with Economic matters. I started by putting in a plug for more bilateral exchanges at all levels, both with Central and
Provincial Authorities. This broadened into a dicussion of
HK's development strategy, Zhou repeated the now familiar concern that HK was falling behind in developing high
technology industry, and urged HKG actively to encourage industry to raise HK's scientific and tecnological capability. Interestingly, he was also doubtful about the long term effectiveness of shifting industrial production to Guangdong.
6.
I said that HK's economy was inspired and driven by enterprise. HKG's role was limited to encouragement, and to provision of adequate infrastructure. We were aware of the problem, as evidenced by the new science and technology university, quality awareness campaigns and encouragement to
hi-tech overseas investors. But investors needed certainty, and at present there were factors which made the future less than certain. (I cited PADS and VMs, on which more later). The reason for the shift in some types of production to China was clear lower labour and land costs. In every Chinese city
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I had visited HK had been the largest overseas investor.
7.
I expressed thanks for measures so far adopted to prevent VMs getting to HK, but asked if more could be done. 5,000 VMs had arrived in May most of them overland or coasthopping. This was a matter of real public concern in HK. We were determined to return all non-refugees to Vietnam.
we needed immediate help to stop the influx. Ye responded predictably - PRC had done its best; mandatory repatriation
should resume; first asylum should go. I reminded Ye that we
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But