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19. The special economic zone at Shenzhen across the border, is slowing taking shape, and Hong Kong investment in it, in Guangdong, and in the rest of China has been widespread. I rarely meet a leading businessman, whether Chinese or expatriate, who has not a large or small venture going in China. Most are more concerned with experience than immediate profits. But many are consciously buying contact with the leadership, whether at a national or provincial level. The investments and the contacts are desirable in themselves, and have political value. We encourage this process, have regular meetings with Guangdong officials about trade, and monitor progress.
20.
The Guangdong Authorities proposed a nuclear power station be built in Guangdong and operated jointly with Sir Lawrence Kadoorie's China Light and Power Company so that the foreign exchange content could be repaid through sales of electricity to Hong Kong. A joint feasibility study has been completed, and provided it survives the current squeeze on capital projects orders should be placed in the course of the year.
21.
The steady improvement and multiplication of commercial and official contacts between Hong Kong and China personalities is certainly providing an improved basis for eventual dialogue about the future of Hong Kong - as of course, on a much more important level, does the warmth of Sino/British relations. Undoubtedly the Chinese would like to leave things as they are for many years to come, but the politico/legal problem of how to do so is complex and sensitive, and the pre- occupations of unwinding the cultural revolution and changing personalities and policies do not produce an atmosphere conducive to settling it. Nor do booming land prices in Hong Kong give any signal of urgency. Meanwhile there is plenty of time, but it is shortening.
Postcript
22.
In retrospect 1980 was a year of some achievement and a year in which most people in Hong Kong had much to be thankful for. But that is not how most people feel. Latterly inflation and static or dropping real incomes, and a rapid rise in commercial rents, have affected wide and articulate sections of the middle and lower income groups. Uncertain forecasts for 1981
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