TNAG-1048-FCO40-1298-Local-Intelligence-Committee-assessment-of-the-political-sit-1982 — Page 34

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Cross Border Security Meetings

4.

The second of the regular meetings between Hong Kong and Guangdong officials was held on 31st July in Shenzhen. The Chinese team was led by the Head of the Border Division of the Guangdong PSB.

A number of matters of common concern were discussed, including movement of passengers at Lo Wu railway station, road traffic at Man Kam To, the tolerated border crossers control arrangements and the admission of Chinese wives of Hong Kong fishermen. Quite separately, the liaison officers who take part in these meetings arranged a useful meeting between C.I.D. officers on both sides for an exchange of information on a currency forgery syndicate operating in both Hong Kong and Guangdong.

Political Study Meetings

5.

Political study meetings for the staff of various communist organisations in Hong Kong, including the Bank of China, two news- papers and film circles, have been revived, though they are less inhibited and rigid than in the past. Subjects for study included the role of MAO ("his merits were primary, his errors secondary") and HU Yaobang's speech on 1 July.

Banking

6.

The Bank of China has invited the Hong Kong and Shanghai Bank to conduct some of its business in France through the Bank of China's new office in Paris. There are unconfirmed reports that one of the four communist banks incorporated in Hong Kong, the Nanyang Commercial Bank, is to seek a listing for its shares in the Hong Kong Stock Exchange.

Commerce

7.

Yet another stage in the controversy over how the foreign trade of China's Provinces should be handled in Hong Kong (para 5 February 81 Report) has been reached with the decision that Fujian's trade dealings should be transferred from China Resources Company (CRC) to the newly formed Fujian Enterprises Company, thus putting Fujian on a par with Guangdong. The Guangdong Enterprises Company, possibly in a hasty effort to establish its position, has held a

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/meeting