TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 30

1

CONFIDENTIAL

Record of conversation between Sir Jack Cater and Mr Ren Zhongyi, Provincial First Party Secretary, in the Zhudao Guest House,

Guangzhou on 11 March 1981 at 4.30 p.m.

Present:

Mr Ren Zhongyi, First Party

Secretary, Guangdong

Mr Zeng Dingshi, Vice-Governor Mr Zhang Bin, Deputy Director

Foreign Affairs Office (FAO)

Mr Fu Fen, Head, Consular

Section, FAO

Mr Lu Jian (Interpreter)

Sir Jack Cater, CS

Dr D C Wilson, PA Mr Y P Cheng

(Interpreter)

After initial courtesies, Mr Ren said he heard that Sir Jack Cater had been in Hong Kong for a long time. The CS confirmed this, saying he had been there for 35 years. He was struck by the way in which relations between Britain and China, and between Hong Kong and Guangdong, had improved in the last few years. He was sure the changes were of mutual benefit. The two places were interdependent. The more meetings that could be held the better. He had had a very good meeting the previous day with Vice-Governor Zeng. Mr Ren commented that the two places were inseparable. The CS went on to say that he noticed that Guangdong's foreign trade had increased by some 26% in 1980 and that a further increase of 17% was planned for 1981. He thought this was a good development. Mr Ren said that both sides were interested in matters of mutual prosperity; they thus spoke a common language.

2.

The CS said that trade depended on a number of things. One was the world market. Another was confidence. The former depended largely on the circumstances of our trading partners: clearly Guangdong expected to do well in 1981, and Hong Kong's prosperity was quite good in the circumstances of world trade. He was pleased, in the latter context, that the relationship with Guangdong was developing well: but it was important that confidence in Hong Kong should be maintained.

The

3.

Mr Ren said that both geography and human effort could help develop co-operation. He thought the development of the Shenzhen Special Economic Zone would help to improve economic relations between Hong Kong and Guangdong. development of Guangdong's trade would help development on both sides. Although Hong Kong was under the administration of the British Government, and Guangdong was under that of China, the life of the people on both sides

/contd..

CONFIDENTIAL

Page 30!