XN000022-1979-10-10 — Page 4

WEDNESDAY, OCTOBER 10, 1979

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SINO-BRITISH RELATIONS IMPROVE FURTHER

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SINO-BRITISH RELATIONS, INCLUDING RELATIONS OVER HONG KONG, HAVE FURTHER IMPROVED DURING THE YEAR, THE GOVERNOR, SIR MURRAY MACLEHOSE, SAID IN HIS OPENING ADDRESS TO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

CHAIRMAN HUA GUOFENG'S VISIT TO THE UNITED KINGDOM LATER THIS MONTH WOULD BE THE FIRST BY SUCH A SENIOR CHINESE LEADER, HE POINTED OUT.

LOCALLY, THERE ARE MANY EXAMPLES OF THE EXCELLENT STATE OF OUR RELATIONS WITH CHINA SIR MURRAY SAID NOTING THAT DURING THE PAST YEAR COMMUNICATIONS BETWEEN HONG KONG AND GUANGZHOU BY RAIL, AIR AND SEA, HAD ALL GREATLY IMPROVED. AND HE HOPED THAT AIR LINKS WITH OTHER CITIES WOULD ALSO IMPROVE DURING THE YEAR AHEAD.

WATER SUPPLIES HAD ALSO BEEN USEFULLY AND SIGNIFICANTLY INCREASED, AND HONG KONG LOOKED FORWARD TO FURTHER TALKS WITH THE WATER AUTHORITIES IN GUANGDONG ON HOW TO MEET INCREASED DEMAND

IN THE LONGER TERM.

LAST MARCH, THE GOVERNOR AND SIR YUET-KEUNG KAN VISITED BEIJING AND GUANGZHOU ON THE INVITATION OF CHINESE LEADERS AND HELD CONSTRUCTIVE AND ENCOURAGING TALKS WITH THEM.

+THESE, LIKE SUBSEQUENT REMARKS BY CHINESE LEADERS, REFLECTED A POSITIVE VIEW OF HONG KONG'S ROLE IN CHINA'S MODERNISATION PROGRAMME WHICH WAS BOTH CONSTRUCTIVE AND ENCOURAGING,+ SIR MURRAY SAID.

HE SAID IT IS CLEAR THAT THE CHINESE GOVERNMENT SEES HONG KONG AS PLAYING A PART IN THEIR MODERNISATION AND ECONOMIC DEVELOPMENT PROGRAMMES WHICH PROVIDE FOR OVERSEAS

INVESTMENT.

+CERTAINLY HONG KONG IS ABLE TO DO SO, AND PEOPLE IN HONG KONG ARE WILLING TO DO SO, AND THE PROCESS HAS STARTED, HE SAID. +OBVIOUSLY THERE IS A VERY SPECIAL OPPORTUNITY AND NEED FOR INVESTMENT IN GUANGDONG.+

+ IT IS IMPORTANT THAT BOTH AS A GOVERNMENT AND AS A BUSINESS COMMUNITY WE CONSTANTLY BEAR THESE NEW POSSIBILITIES IN MIND AND STUDY WAYS OF ADVANCING THE PROCESS CONSISTENT, OF COURSE, WITH WHAT IS COMMERCIALLY, AND IN OTHER WAYS ACCEPTABLE, HE SAID.

SIR MURRAY ALSO POINTED OUT THAT HONG KONG STANDS ON THREE LEGS - ITS OWN PROSPERITY AND COHESION, CO-OPERATION WITH CHINA AND THE SUPPORT OF THE UNITED KINGDOM.

HE SAID THE EVOLVING SINO-BRITISH RELATIONS AS WELL AS A MORE REALISTIC APPRECIATION IN THE UK OF HONG KONG AS A MARKET, AND AS A POINT OF CONTACT WITH CHINA AND THE WESTERN PACIFIC REGION, WOULD ADD NEW SUBSTANCE TO THE UK/HK RELATIONSHIP.

/HE NOTED