TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 29

CONFIDENTIAL

68A

布政司署

香港下亞畢道

GOVERNMENT SECRETARIAT

LOWER ALBERT ROAD

HONG KONG

本署檔號 OUR Rer.:

SCR 3/5701/81

*YOUR Ref.:

Entis

19 March. 1981

RD Clift Esq

Hong Kong & General Department

F CO

ee

fich.

Акконо

Mr Momme 22013

Токий

Q.27.3.

Mr. Pa

RECEIVED IN REGISTRY NO. 51 2 6 MAP 1981

DESK OFFICER

INDEX

PA

REGISTRY Action Taken

VISIT BY THE CHIEF SECRETARY TO GUANGDONG:

CONFIDENCE IN HONG KONG SLFUTURE 27.3 AN

E

copied to Sir ← Youds

26/3

Before the Chief Secretary went on last week's visit to Guangdong (about which I have reported in detail separately), it was agreed that, if a suitable opportunity presented itself, he should speak in broad brush terms about continuing prosperity in Hong Kong, on which Guangdong's earnings depended, being related not only to the state of world trade but also to confidence in the territory.

2.

The Chief Secretary referred to this point on two occasions. One was in speaking to the new First Party Secretary, Ren Zhongyi. The other was when speaking over dinner to Governor Liu.

3.

You will see from the record of conversation with Ren, attached, that he may well not have picked up precisely what was being said to him, although I expect his note takers did. Liu (note of conversation also attached) probably realised what was being said but, as might be expected, turned the comment by saying that the development of Shenzhen would help confidence in Hong Kong and pointing to the significance of long-term arrangements for investors in the Special Economic Zone.

4.

In all, we have done no more than register with the new Guangdong leadership that there is a confidence-in- Hong Kong dimension which could affect their ability to earn foreign exchange. No more was planned or expected.

PRO

eves

сс

RJT McLaren Esq (FED)

M W Atkinson Esq MBE (PEKING)

(D C Wilson) CONFIDENTIAL