TNAG-1048-FCO40-1298-Local-Intelligence-Committee-assessment-of-the-political-sit-1982 — Page 75

953

SECRET

LOCAL INTELLIGENCE Comm. TTER ASS

Pol SIT HYC

SCR 1/46 SF 'B'

Alle Sorter

W2713 4 ud

SEA Dus

Rip par 24

3

pars 30-31

PA

Page No.

1

of 10 pages

ages $24.

HUED & File

Copy No. 2. of 23 copies

HKK 053/1

RECEIVED IN REGISTRY NO. STU

0 4 JUN1981

DESK OFFICER

INDEX

VIRY

Takan

CHINA AFFAIRS

LIC HONG KONG

REPORT FOR FEBRUARY 1981

Sid. See Min. Le

26/3

CALD

iJay

REC

Guangdong Provincial Peoples' Congress

The third session of the Fifth Guangdong Provincial

Peoples' Congress began on 24 February, with thirty-one delegates from Hong Kong and Macau taking part. The report by Vice-Governor LIU Tianfu (who, later in the session, was elected as the new Governor) included reassurances to

foreign investors that, despite the economic readjustment in

China generally and some reduction in expenditure on capital

works in Guangdong, the Province would continue to welcome outside participation in its economy, particularly where

foreign exchange earnings were likely to be considerable and

domestic outlay minimal.

Banking and Finance

2.

It was announced that the Beijing exchange control authority had ordered the return to China of unauthorised

foreign currency deposits held abroad by Chinese organisations. However, such organisations in Hong Kong mostly keep their deposits in the Bank of China (BOC) to which the new ruling does not apply. It is therefore unlikely to have any

significant effect locally.

G.F. 316

SECRET #2

/para 3.

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