TNAG-1162-FCO40-1442-Visit-by-Margaret-Thatcher--UK-Prime-Minister--to-Hong-Kong--1982 — Page 33

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RECORD OF A MEETING HELD IN CANTON ON 27 SEPTEMBER AT 11 AM, BETWEEN THE PRIME MINISTER AND THE GOVERNOR OF GUANGDONG PROVINCE, MR LIU TIANFU, AND THE MAYOR OF CANTON, MR LIANG LINGGUANG

1. After the initial words of welcome, Mrs Thatcher asked Governor Liu what special powers Guangdong Province had. Mr Liu said that the main point was that Guangdong and Fujian Provinces can pursue specific policies and flexible measures, by which he meant that the two Provinces were even more open to the outside world than China as a whole under the present open-door policy, and had more local power of decision. This applied throughout the Province but in the Special Economic Zones the policy was even more open. The Frime Minister asked whether the Special Economic Zones decided their policies on their own or whether they had to refer for authorisation to the provincial government. Mr Liu explained that as the establishment of the Special Economic Zones had been made by the Central Government, they in fact derived their authority from it and had rather closer relations with the State Council than the Province.

2. The Prime Minister then referred to the close relations between Hong Kong and Guangdong Province, and commented on the telecommunications link which had already been established by the Cable and Wireless Company. Mr Liu said that Cable and Wireless was a very good company and there was already a long history of cooperation between Guangdong Province and it. A new agreement had just been signed for a Province-wide microwave link and later in the day a letter of intent would be signed between Cable and Wireless and the Guangdong Post and Telecommunications Bureau for a joint venture for communications with the offshore oil rigs. The Prime Minister said that she was very glad that she was going to witness this signature.

3.

Mrs Thatcher then referred to the Guangdong nuclear project as an enormous example of possible cooperation between Britain, Hong Kong and Guangdong Province, and referred to her close friendship with Sir Walter Marshall as the head of the CEGB, who had recently visited Canton for discussions about the project. Hr Liu spoke in praise of Lord Kadoorie, and his great enthusiasm for the project. Four generations of his family had lived in China and now that he was over 80 he wished to do his bit for the modernisation policy. It was largely owing to his enthusiasm that the proposed joint venture between China Light and Fower and the Guangdong Electric Power Company was under discussion.

4. The Prime Minister said she also wanted to mention the Dunlop company, who had nearly completed a contract for the modernisation of a tyre factory in Canton. She understood that it was only held up by a tax point. Mr Liu said that Canton town was indeed negotiating with Dunlop and the talks were going on at the moment. Fir Liang, the Mayor of Canton, said they had