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CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 1530
OF 041249Z JUNE 92
INFO ROUTINE PEKING
CONFIDENTIAL
4KC 026/5
RECE!
5 JUN 1992
DESK OFFI. : INDEX
CALL BY GOVERNOR OF HEBEI.
TRY
FGISTRY Action Taken
ра
см
Ru
067212
MDLIAN 0357
TOP COPY
Q DIST?
Chicle white to HK.
1. THE GOVERNOR OF HEBEI, CHENG WEIGAO, CALLED ON ME ON 1 JUNE. HE WAS PASSING THROUGH HONG KONG AFTER VISITING CANADA AND ARGENTINA. WE HAD A FRIENDLY DISCUSSION, WHICH FOCUSED MAINLY ON DEVELOPMENTS IN HEBEI.
2. WHILE HE RECOGNISED THAT HEBEI COULD NOT COMPETE WITH GUANGDONG AND SHENZHEN IN ATTRACTING HONG KONG BUSINESSMEN, CHENG LIKE OTHER PROVINCIAL GOVERNORS, WAS KEEN TO SEE INCREASED INVESTMENT FROM AND TRADE WITH HONG KONG. HE TOLD ME THAT HONG KONG BUSINESSMEN HAD BEEN THE FIRST TO SET UP JOINT VENTURES IN HEBEI AND NOW WERE INVOLVED IN 30-40 PER CENT OF THE PROVINCE'S 1,500 JOINT VENTURES OTHER MAJOR INVESTORS WERE JAPAN, SOUTH KOREA AND THAILAND. ONE PARTICULAR THAI OVERSEAS CHINESE (XIE) HAD PUT US DOLLARS 100 MILLION INTO SIX PROJECTS IN QINHUANGDAO. WHEN ASKED HOW HE PLANNED TO ATTRACT HONG KONG INVESTORS, CHEN SAID THAT HE WOULD CHOOSE FOR THEM PROJECTS WHICH WOULD MAKE THEM
A GREAT DEAL OF MONEY.
3. CHENG OUTLINED HIS PLANS TO IMPROVE HEBEI'S INFRASTRUCTURE. NEW AIRPORTS WOULD BE BUILT AT SHIJIAZHUANG (WORK TO START IN JULY WITH COMPLETION ONE AND A HALF YEARS LATER), SHANHAIGUAN (DETAILED PLANS COMPLETED) AND JINAN (FEASIBILITY STUDY COMPLETED.) THE ONLY AIRPORT HEBEI CURRENTLY BOASTED WAS A MILITARY AIRPORT WITH VERY FEW ROUTES.
4. A NEW PORT CAPABLE OF HANDLING VESSELS UP TO 70 - 80 MILLION TONNES WOULD BE DEVELOPED AT HAUNGHUA. COAL SHIPPED TO THE PORT WOULD BE TRANSPORTED BY A NEW RAIL LINK TO SHIJIAZHUANG AND BEYOND THAT TO SHANXI PROVINCE. THIS RAILWAY WOULD BE FUNDED BY THE COAL MINISTRY. TWO FURTHER PORTS WOULD BE BUILT NEAR CANGZHOU AND
TANGSHAN.
5. AN EXPRESSWAY BETWEEN SHAJIAZHUANG AND PEKING, WHICH HAD REDUCED THE JOURNEY TO TWO AND A HALF HOURS, WAS ALMOST
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PAGE CONFIDENTIAL