TNAG-0943-FCO40-1162-Future-of-Hong-Kong-1980 — Page 252

CONFIDENTIAL

DSR 11C

Kong, also took the opportunity to speak about issues of broader political

concern to the Chinese Government; namely, Guomindang (Kuomintang) and

Soviet activities in Hong Kong, and illegal immigration into the territory.

57

longer.

}

Contacts between the Hong Kong Government and the authorities in

Guangdong on matters requiring technical or administrative co-operation,

as distinct from political negotiation, have been established rather

Official arrangements for the supply of water from China, for

example, have existed since 1964. Even during the period of "confrontation"

during the Cultural Revolution, when relations had reached a low ebb,

these supplies were maintained. Particularly since 1972, Government and

quasi-Government personnel from Hong Kong have engaged a frequent and

comprehensive range of contacts with their CPG counterparts in Hong Kong

and Guangdong. Once the political lines have been cleared in Peking or

Guangzhou, Chinese officials have been authorised to implement decisions

on such matters as postal services, railways, water supplies etc.

this category the number of contacts in recent years has risen markedly

and Hong Kong Government personnel have been involved (directly or

indirectly) in negotiations with officials from Guangdong for the current

water supplies agreement (signed on 29 November 1978) and the opening of

a through passenger train service between Guangzhou and Hong Kong.

(inaugurated 4 April 1979). With the recent increase in the. number of

aeroplane flights between Guangzhou and Hong Kong, and the series of

non-scheduled charter flights, contacts between the respective aviation

authorities and discussions on technical matters have expanded also.

In

58. There are indications that authority to make decisions on a wider

range of important economic matters is devolving from Peking to Provincial

capitals. For example, the Provincial authorities in Guangdong have

displayed an authority to conduct negotiations and have signed "Memoranda of Understanding with the General Electric Company of Hong Kong for the purchase

}