GR 482
IMMEDIATE
DESKBY 151100Z (FCO))
DESKBY 160130Z (PEKING)
CYPHER/CAT A
FM HONG KONG 151027Z
CONFIDENTIAL
DESKBY 1511238Z (FCO)
CONFIDENTIAL
INK DERC:
07.
*
• RY
Seella
DESKBY 160130Z (PEKING)
INFO IMMEDIATE PEKING.
TO IMMEDIATE F.C.O TELNO.1103 OF 15 SEPTEMBER
78,
118
(119
2.
3
M.I.F.T: RELATIONS BETWEEN HONG KONG AND CHINA :
SUMMARY OF RECENT DEVELOPMENTS.
11 NEGOTIATIONS, CONCLUDED FOR A THIRTY PERCENT INCREASED WATER
SUPPLY FROM CHINA UP TO 1982/3. A NEW AGREEMENT WILL BE SIGNED
NEXT MONTH. THE CHINESE HAVE AGREED TO TRY TO WORK OUT BY NEXT SEPTEMBER HOW TO MEET OUR LONG-TERM WATER REQUIREMENTS UP TO 1995 (300 PERCENT INCREASE). NON-SCHEDULED CARGO FLIGHTS CONTINUE. ARRANGEMENTS ARE PROCEEDING WELL FOR THE OPENING, POSSIBLY IN NOVEMBER, OF A HOVERFERRY SERVICE BETWEEN HONG KONG AND CANTON. THIS WILL BE OPERATED BY A COMPANY WHICH HAS NO FINANCIAL LINKS WITH CHINA AND WHICH HAS EVIDENTLY BEEN CHOSEN
IN PREFERENCE TO AN ESTABLISHED LEFT-WING COMPANY. THERE HAS BEEN MAJOR INVESTMENT BY A CPG-SUPPORTED COMPANY IN A COMMERCIAL
AND RESIDENTIAL DEVELOPMENT CONNECTED WITH THE MASS TRANSIT
RAILWAY SYSTEM, THESE DEVELOPMENTS MAKE ECONOMIC SENSE BUT ALSO
UNDERLINE CHINA'S INTEREST IN THE STABILITY AND PROSPERITY OF
HONG KONG.
12.
THERE
CONFIDENTIAL
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