TNAG-0841-FCO40-1050-Visit-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-Chi-1979 — Page 29

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wit. Hone one in September this year. (The Director of the Bureau of Water Conservancy and Electric Pover later gave an explanation of the plane. Que possibility was to bring water by canal in 2 lange loop round to the west. This would facilitete irrigation and require less pumping than the present route. Full details had not yet been worked out, They would be discussed with the delegation from Hong Kong in September.) There might be a shortage of electricity in Hong Kong in the late 1980s. Guangdong was considering the constriction of a nuclear power plant. It would be helpful for them to know in advancé if Hong Kong would require electricity from such a plant. It required some 6/7 years to build a nuclear power station.

Communications and Transport, There was already good cooperation over rail, air and the hoverferry services. The next area where development was likely to be needed was in the transport of goods by road. They had a plan to allow trucks from both sides to move freely in the area of Shenzhen municipality. Further discussions would be needed between both sides on the details. Mr Zeng then reverted to the port at Nantou. He said that Whampoa at present could only take ships of 18,000 tonnes in the old port and 20,000 tonnes in the new one. They were short of a deep water harbour. This was why they were considering development at Nantou. It was however a long term scheme and it would be necessary to dredge a channel there. In answer to a question from the Governor he said they were considering using ships with a draught of 18 metres.

Industry.

Hong Kong was well developed as a

banking and financial centre. It was also rich in modern techniques. Guangdong on the other hand had large areas of land and a great supply of labour. There was a possibility for cooperation in electronics and light industry in general.

Guangdong would be able to find more labour as agriculture was improved. They were thinking of carrying out processing and assembly work in Guangdong. They were also considering various forms of compensation trade. These developments were still at an early stage. He thought that conditions for cooperation were better in the Shenzhen area than elsewhere in China. It was possible for Hong Kong businessmen to invest small amounts of capital in Guangdong; the return profit would go back to Hong Kong.

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