TNAG-1159-FCO40-1439-Visit-by-Margaret-Thatcher--UK-Prime-Minister--to-Hong-Kong--1982 — Page 95

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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coincide with your own visit.

2. People's Republic of China.

My views after a four-day visit are necessarily limited. Nevertheless, it seems clear that the Chinese Government wish to have some kind of contract which can be agreed in time for your visit. On the other hand, on sales one cannot be over optimistic even with the prior claims for modernisation of industry, agriculture and science and technology. Moveover, Xu Xin, Assistant Chief of General Staff (and very much regarded as the coming Defence man) gave clear indication that his priorities were directed towards the modernisation of the Army first and the Navy second (and no mention was made of the Air Force). He went on to emphasise that the United Kingdom should regard itself as well placed in the league of defence suppliers in relation to its major competitors.

Looking more widely at the prospects for British exports to China, it is hard to see where the grand gesture will come from given the current shortage of foreign exchange. On that score, it may be that some prospects currently lie in the joint venture and increased scope for trading at provincial level. I have particularly in mind the Hong Kong Guangzhou micro-wave system which is to become operational by early 1983. This is port of a determined effort by Cable and Wireless to build up a direct communications commitment between Hong Kong, the Province of Guandong and through its other interests in Singapore and Manila, to cover the whole of the Far East.

There are substantial political implications in a joint commitment of this kind so far as the whole future of Hong Kong is concerned.

3. Hong Kong

Apart from what might be termed conventional communication links of this kind, there are a number of other opportunities for Hong Kong to strengthen its commercial and industrial links with mainland China. The chief concern remains the uncertainty over the future of the New Territories and its impact on such desirable projects as the possible replacement airport on Lantau Island. Meanwhile, Mr. Bremridge, the Financial Secretary, believes that the Colony must make a firm decision regarding this and other competing claims for the new towns, the house building programme etc. in about 18 months time. Incidentally, he expressed himself well satisfied with the Hong Kong Government's equity stake

Yin Cable and Wireless and the new vigour and drive in

the management of that Company.

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