TNAG-0841-FCO40-1050-Visit-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-Chi-1979 — Page 96

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3.

5. Mr Li commented that Singapore and Hong Kong were both free ports. The Governor had seen the port at Huangpo. He wondered whether the deeper waters of Hong Kong might be useful to the Chinese who could transfer their goods by smaller vessels to Huangpo. Mr Li agreed that this might be useful. Even ships of 10,000 tons had difficulty negotiating the estuary of the Pearl River. Dredging was constantly necessary. The Governor asked whether, if facilities would be required in Hong Kong, use could be made of the existing ones or whether special facilities or a container port would be required. In response to a question from Mr Li, he confirmed that Hong Kong harbour could take ships of up to 200,000 tons. Mr Li said that it cost much less to use big ships even if it was necessary to transship goods by barge.

6.

The Governor said that this was why he had mentioned the question to the Guangzhou authorities. He went on to say that there are many areas where there could be useful cooperation. Tourism was an example. People who came to Hong Kong in order to buy cheap goods may well then go on to China. He suggested that both Hong Kong and China might wish to send their tourists to the other side.

7. Mr Li referred to the introduction of the hovercraft service and the through-train service. He said that many decades ago people had preferred to travel by sea rather than by train to Canton. The Governor said that by 1982 the whole length of the track between Lo Wu and Kowloon would be double-tracked and electrified, and that the capacity of this sector would be tripled by 1982. (There was then a brief discussion of the question of whether AC or DC current was used to electrify the railway. Mr Li explained that in China there was a rectification system within the locomotives).

8. The Governor said he saw the future development of Hong Kong in 2 ways: firstly it could develop through increased industrial cooperation with China and secondly, it would need a programme of investment in higher technology. It would of course also continue to develop as a port. The contacts between the private sector in Hong Kong and China were important. Replying to a comment by Mr Li that Hong Kong's development resulted from the efforts of the Hong Kong Government and the Governor in particular, the Governor explained that his Government could help in three ways:

a)

by providing land through reclamation and earth works;

by applying the appropriate financial policies, and

c) by maintaining confidence.

b)

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