TNAG-1621-FCO40-2235-Relations-between-Hong-Kong-and-China-1987 — Page 43

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GRS 220

CONFIDENTIAL

FM HONG KONG

CONFIDENTIAL

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TO IMMEDIATE FCO

TELNO 501

OF 11102OZ FEBRUARY 87

INFO PRIORITY PEKING

RECEIVED IN A&Y-BIKY

12 FEB 1907

Tekm

PERSONAL FOR HUM, HONG KOND DEPARTMENT FROM ACTING GOVERNOR

POLITICAL CHANGES IN CHINA

1. GU MU MADE A PREVIOUSLY ARRANGED VISIT TO THE SEZ OVER THE WEEKEND AND A NUMBER OF BUSINESSMEN AND PROPERTY DEVELOPERS FROM

HONG KONG HAD BEEN INVITED TO SHENZHEN TO MEET HIM. THEY WERE EXPECTING A POSITIVE DISCUSSION BUT, IN FACT, THE MEETING TURNED INTO MERELY A SOCIAL OCCASION AND A WASTE OF TIME. THE INFORMANT

SAID THAT HE THOUGHT THIS REFLECTED THE PRESENT INDECISION AND

UNCERTAINTY IN CHINA.

2. IN A SIMILAR VEIN, A PROMINENT BUSINESSMAN, WHO HAS REGULAR CONTACT WITH SHANGHAI, SAID THAT THERE WERE MANY FACTIONS IN THE PARTY IN SHANGHAI AND A LOT OF ARGUMENT AND LITTLE AGREEMENT. THE MAYOR HAD SAID THAT IN THIS RESPECT HE HAD ONE OF THE MOST

DIFFICULT JOBS IN CHINA.

3. I WAS INFORMED AT LUNCH THIS WEEK BY A DIRECTOR OF A LEADING LOCAL COMPANY THAT CHANGES OF ATMOSPHERE HAVE RECENTLY BECOME APPARENT IN THEIR JOINT VENTURES WITH CHINA. IT WAS NOW MUCH MORE DIFFICULT TO GET DECISIONS FROM THE CHINESE. MOREOVER,

MOREOVER, THE PARTY OBSERVERS WHO HAD DURING 1986 CEASED TO ATTEND MEETINGS HAD NOW

REAPPEARED.

4.

THIS IS AN UNHELPFUL, IF NOT UNEXPECTED, INDICATION OF WHAT MAY BE A GENERALLY MORE CAUTIOUS APPROACH BY THE CHINESE BUREAUCRACY

TO CONTACTS WITH THE OUTSIDE WORLD.

AKERS-JONES

HMINAN 8448

HONG KONG AGREEMENT:RESTRICTED

LIMITED

HD/HKD

HD/FED

COPIES TO:

MR FIFOOT

LEGAL ADVISERS

RESEARCH DEPT (FE)

DEP/HD/PUSD PS/MR RENTON MR GILLMORE SIR D WILSON

CONFIDENTIAL