TNAG-0742-FCO40-946-Relations-between-China-and-Hong-Kong-1978 — Page 17

Reference

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Thompson's submitting N Orletti repotis this speech.

Mr Quantrill 14/4

Mr Thompson

CONFIDENTIAL

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HONG KONG/CHINA RELATIONS

HAKK azel!

RECLIVLO DI NEG/STRY NO. 51 19 SEP 1973

UK OFFICEN

RES

RY

PA

Actio· Teken

INDEX

No

1. I have had a word with Mr Masefield about Mr Orr's letter of 7 September (attached). He thinks, and I agree, that we might now, produce a submission for Ministers which would try to draw/the recent evidence of increasing Chinese interest in, and benevolence towards Hong Kong. I have also had a word with Mr Murray who similarly agrees. He would like us to make the point that such moves as the sending of a more senior man to head the NCNA office should be seen in the context of China's concern to maximize its returns from Hong Kong as well as in that of Hong Kong/Chinese relations.

2.

Points which we might cover in the submission should include the appointment of Wang K'uang as No 1 Director of the NCNA, and his call on the Governor; the recent negotiations about future water supplies from China (I was assured last week by Mr Q W Lee · that the results had been very satisfactory, though I do not think we have yet seen a report from Hong Kong); the increasing involve- ment of Peking-owned companies in property development and other long-term projects (including their interest in developing Lantau); and the adoption of a more commercial approach by Chinese bankers in Hong Kong. The most recent edition of the FEER (page 8) also mentions what sounds like a very interesting speech by Chi Feng; I do not know whether we have yet received any report on that.

3. I should be grateful if Mr Thompson would now start work on this submission, keeping in close touch with FED. It would provide useful background for the Chinese Foreign Minister's visit.

CODE 18-77

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14 September 1978

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RJ T McLaren-

the Chinese

The Mehaven has agreed that today's submission

the Governor's attendance at National Day reception) was made, albait brighty, mest of the fails above, No

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the present.

No further acten

PA Sista

CONFIDENTIAL