CONFILENIAL
23.
8.
The Governor referred to the points he had made in his LegCo speech about the importance of Hong Kong contributing where possible to China's drive for modernisation. In certain areas, notably communications, much had been done in the past year. There were plans for increased contact by road and sea and the Hong Kong Government was doing what it could to help in the provision of facilities. It was important to have effective liaison over development plans which might affect Hong Kong.
Dr Wilson said that it might be useful for him to call on some of the economic planning officials in Canton when he was there later in November.
9.
Mr Wang said that co-operation on economic development was important. He welcomed the idea that the Political Adviser should discuss economic matters in Guangzhou. Some of those concerned might be going to Australia with X1 Zhongxun; the detailed timing of a visit could be worked out later. Mr Li added that there was no problem in arranging visits by Hong Kong officials to Shenzhen as well.
(ii)
Cargo Handling
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Tre
10.
Mr Li said the Chinese had a particular problem about cargo handling facilities. China Merchants Steam Navigation Company had for many years had a pier in Western but this was now being taken away from them as the area was being reclaimed. Lack of their own cargo handling area would cause great difficulties for the large number of boats from China bringing fresh food to Hong Kong, Governor said he was well aware of the problem. He had indeed talked about it to the Director of marine. They could have his assurance that alternative facilities would be provided for the exclusive use of China Merchants. This would be an exceptional arrangement but he recognised that this kind of shipping from China was itself exceptional.
(iii)
11.
Water
The Governor referred to his understanding that a meeting would be held in the autumn of 1979 (September had been mentioned) to discuss Hong Kong's long-term water requirements. If these needs could be met by China there was no urgency about the timing of a meeting, but if there were problems this needed to be known as soon as possible. Mr Li said that as far as he knew there was no problem in increasing water supplies. He believed the meeting would soon take place. The man responsible was seriously ill with cancer but he had now been replaced.
Political Adviser's Office, Hong Kong.
CONFIDENTIAL
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