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In
strengthening economic cooperation between Hong Kong and
China and of encouraging Hong Kong investment in China
in order to achieve their modernisation programmes.
particular, the Governor was gien detailed briefing on the
development plans for areas in Guangdong Province immediately
adjacent to Hong Kong, and on the scope for Hong Kong
participation in that development.
b) The Future of Hong Kong
The Chinese authorities made a special point of emphasising
to the Governor that the people of Hong Kong should have no
fears about their future. Deng Xiaoping in particular formally
asked the Governor "to ask investors in Hong Kong to put
their hearts at ease about the future of their investments".
c) Communications
The Chinese made it clear that they wished to develop land,
sea and air transport links between Hong Kong and China and
to expand their tourist industry. The Governor returned to
Hong Kong on the inaugural service of a new direct through-train
service between Canton and Hong Kong.
d) Immigration
The Governor took the opportunity to explain to the Chinese
leaders the problems created for Hong Kong by the very high
rate at which both legal and illegal immigrants from China are
arriving in the Territory. The Chinese showed themselves
sympathetic to Hong Kong's problems, and admitted that the
measures they had taken so far had not been effective.
promised to do more.
They
/e)
5.
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e) Chinese Representation in Hong Kong
The Chinese Foreign Minister raised with the Governor the
question of appointing an official Chinese representative in
Hong Kong. This is a matter that has been raised several times
in the past, and Huang Hua said that they would probably wish
to raise it with the Foreign and Commonwealth Secretary if he
should visit Peking. In reply, the Governor said that he
understood ways had now been found of solving most of the
practical difficulties which the Chinese authorities had
previously encountered as a result of the absence of official
representation in Hong Kong. If there nonetheless still
remained problems, he was confident that they too could be
solved. He said that while he believed the time would come
when it would be appropriate to appoint an official Chinese
representative in Hong Kong, to do so at this stage might
disturb confidence in Hong Kong.
f) Hong Kong Water Supply
In Guangdong, the Governor was shown the arrangements being
made to meet Hong Kong's current water requirements and
briefed in detail on the plans being made to solve the need
for greatly increased supplies after 1982.
Although the Governor had discussions with Chinese leaders,
the visit remained primarily a goodwill visit, and it was never
envisaged that it would lead to new agreements. This was clearly
understood by people in Hong Kong, for whom the most important thing
about the visit was probably that it took place at all. As a result,
the visit was generally welcomed in Hong Kong and did much to
reassure the Hong Kong public about Chinese intentions.
BACKGROUND NOTE
DEFENCE SALES TO CHINA
COCOM
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CONFIDENTIAL
1.
Ministers will be considering on 11 June defence sales policy
to China including the implications for COCOM.
Harrier
2.
Commercial negotiations for the supply of Harrier to China
are unlikely to be completed before the autumn at the earliest.
The negotiations are at too early a stage to give any meaningful
estimate of the number of jobs which will be created
VISIT BY PREMIER HUA GUOFENG
3.
Premier Hua has been invited to pay an official visit to
Britain from 30 October to 3 November dates proposed by the
Chinese.
The Lord Privy Seal said on 18 May that we look forward
to a visit by Premier Hua later this year, but, at the request of
the Chinese, the dates have not been announced.
HONG KONG
4.
The Governor of Hong Kong 's official visit to Peking in March/
April was the first such visit since the Communists came to power
in China.
Ministers.
He was received by Vice Premier Deng and other Chinese
Deng specifically asked the Governor to tell businessmen
"to put their hearts at ease" in respect of their investments.
IMMIGRATION INTO HONG KONG
5.
70,000 Legal immigrants arrived in Hong Kong from China in
1978.
A further 36,000 arrived in the first five months of
1979.
We have repeatedly impressed on the Chinese the problems
that immigration on this scale creates for Hong Kong. Vice Premier
Deng Xiaoping assured the Governor in March that more effective
steps would be taken. The figures have been coming down steadily;
from over 300 a day last December to 156 a day in May but are
/still
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CONFIDENTIAL
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