TNAG-0943-FCO40-1162-Future-of-Hong-Kong-1980 — Page 45

8

1

ни

be people of competence and ability who are accepted by and respected by the people in the district in which they are operating.

Now it's a very

reasonable suggestion that an elected element would help this. This is

suggested in the Green Paper. I have had it put to me that nobody in HK wants elections I personally don't believe it. It may be true. At any rate the question is posed and it's up to people to answer it.

Q. From your discussions with Chinese officials in recent months can you go

into any more detail for the sake of investors and the balfours in HK and

the NT any more details on their views how HK and China are going to resolve

the two territories?

A. I think one of the most significant developments of the past year and a half

is the explicit acceptance by the Chinese Govt that HK has a very positive part to play in the modernisation programme of China. Of course this isn't restricted to Guangdong. HK businessmen are participating in projects of one sort or another in many parts of China but certainly my attention has been directed by Chinese officials, since you ask, to Guangdong as an area which is particularly suitable for HK businessmen to enter into compensation deals and joint ventures. It is near and I believe it is an area of very high rural unemployment, because there is no language problem, and with of course the blessing of the HK Govt but without any official action this kind of co-operation has developed. One hears all sorts of figures but it must be around about the 1 000 mark. There are perhaps in many cases quite small projects but nevertheless they are multiplying. Then there is the development of the special municiapality of Shum Chun which is clearly designed to attract and tap expertise, capital, managerial capacity from HK. We have had discussions about this, particularly with regard to trans-border transport and we will continue to do anything that the Govt needs to do to help that along. It is essentially a matter for the judgment of private businessmen, but I see no reason to fear such a development, on the contrary I think it is an extremely logical step and I think a good thing.

Page 45Page 46