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A word about communications. Hong Kong is the best deep-

water port available to Guangdong, and also the terminus of the South

China railway system. It also is a centre of world-wide sea and air

transport. Obviously these aspects are important to China. The through-

train is important in itself and also as a beginning of an improved

train service in general. They clearly wished to proceed fairly-soon

to through-freight services and this is already being examined.

We saw developments of the old and new ports at Whampoa. They

are impressive, but depth makes the ports impossible for larger ships

of over 20,000 tons and particularly the new generation of container

ships and tankers. They are considering how to overcome this, one

possibility being more extensive trans-shipment into barges in Hong Kong

or other facilities here. They are considering a deep water port at

.Nantou, but I gathered it was a long-term plan rather than an immediato

possibility.

They envisage the further development of air services from

Hong Kong to major cities in China in support of tourism and freight.

As you know Shenzhen has been made into a special municipality stretching

from the Pearl River Estuary to Mirs Bay. It covers an area larger

than Hong Kong. A good deal has been written about this in the local

press, I will repeat what we were told. The general plan is to

develop it for agriculture, light industry and tourism and to enlist

Hong Kong participation.

The first

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