TNAG-0943-FCO40-1162-Future-of-Hong-Kong-1980 — Page 37

CONFIDENTIAL

- 2.

-

what was happening in Guangdong was only a small part of the much wider detachment of industry from agriculture in the country as a whole. The Governor agreed but saw some effect from the develop- ment of joint ventures, with Hong Kong capital, in different parts of China. If such ventures were successful, it would be difficult for Chinese state-run enterprises to avoid introducing similar economic incentives.

Distribution:

PS/Mr Blaker

Sir E Youde HKGD

FED

Acting Governor, Hong Kong HMA, Peking

CONFIDENTIAL