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"This was done to attract overseas manufacturers into arrangements
for the production of a wide range of industrial products in a number of
designated free trade zones or export processing zores, This very positive
start was later followed up by the visit made by the Financial Secretary, Sir
Philip Haddon-Cave, who was invited to visit Beijing to discuss natters
relating to China's economy and finance. A further step forward in our
relations with China was the fact that only last month I was invited by the
Guangdong provincial authorities to lead the first Hong Kong trade mission to
China. I returned from this venture only a few days prior to my departure
from Europe.
"The object of my mission was to explore, understand and develop
areas of economic co-operation. My mission comprised not only representatives
from Hong Kong, but also from Britain. I was shown every courtesy by the
Governor and other officials of the province and given all facilities to
examine and understand new China's modernisation plans as they apply to
Guangdong. During our stay, we were taken to inspect Shum Chun, one of the
three major areas adjacent to Hong Kong selected by the Chinese authorities
for development. I can assure you there is very high degree of economic
activity in this potentially important area adjacent to Hong Kong.
"It was not only the construction of plants and the operation of
factories that impressed me, but the general development of the infrastructure.
At the last count over 1 200 firms, many of which were from Hong Kong, were
considering joint ventures or actively producing goods in this free zone.
"I have already mentioned the British component of my mission
and as I pointed out to Sir Keith Joseph in September last year it is British.
enterprise, in partnership with Hong Kong enterprise, that has now and vital
prospects in China. Over the last few years, many high-level missions have
visited China but the initital euphoria and the high hopes that were generated
have now gone. The Chinese authorities are now adopting a characteristic,
pragmatic approach which was their reason for inviting me to Guangdong.
/"I endorse