TNAG-0851-FCO40-1061-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 100

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CONFIDENTIAL

CONFIDENTIAL

FM FCO 021825Z NOV 79 TO IMMEDIATE HONG KONG TELNO 907 OF 2 NOV 79 INFO PRIORITY PEKING

FOR GOVERNOR FROM MCLAREN

HEROVOLI

KARVED IN HOCKEY NO. $1

5 NOV 1979

IND

1255

FCO TEL NO 899: PREMIER HUA'S VISIT.

1. AFTER THE EXCHANGES RECORDED IN MY TUR, PREMIER HUA SAID THAT HE WISHED THE PRIME MINISTER TO KNOW THAT THE CHINESE GOVERNMENT HAD DECIDED TO TREAT GUANGDONG PROVINCE IN A SPECIAL WAY, TO ALLOW ITS ECONOMY TO DEVELOP QUICKER. SEVERAL COUNTRIES BORDERING ON HONG KONG HAD BEEN DESIGNATED SPECIAL AREAS, IN THE HOPE THAT THIS WOULD CAUSE PRODUCTION AND INCOMES TO INCREASE AND THE DIFFERENTIALS WITH HONG KONG TO NARROW. TWO COUNTRIES BAOAN AND ZHUHAI, HAD ALREADY BEEN DESIGNATED, AND CHAOZHOU WOULD FOLLOW. THESE COUNTIES WOULD HAVE POWERS TO DEVLOP THEIR OWN FOREIGN TRADE.

CARRINGTON

FILES

HKYGD

FED

MR CORTAZZI

MR MURRAY

CONFIDENTIAL