TNAG-1621-FCO40-2235-Relations-between-Hong-Kong-and-China-1987 — Page 47

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

CONFIDENTIAL

20

布政司署

香港下亞厘畢道

DIE

**** OUR REF.: PA CR 1/1916/82

來函檔號 YOUR REF.:

CE Leeks, Esq.,

OL

2121 020/2

Hong Kong Department,

FCO

RECEIVED

GOVERNMENT SECRETARIAT

LOWER ALBERT ROAD

12 FEB 1907

HONG

KONG

PIRAR

26 January 1987

Dear Clinton,

China Relations Committee

37

1985

fice

19

Further to my letter of 11 November, the CRC met for the 7th time on 10 January. I have sent copies of the economic reports to Anthony Layden, (my letter of 23,January), copied to Charles Parton in Peking amongst others. Once again, it was the economic reports which dominated the meeting, below).

On matters arising from earlier discussions:

(a)

(see

on the Shatin ferry terminal, the situation remains the same as earlier reported, but has now been removed from the CRC agenda as the "China angle" is no longer there.

(b) it was decided not to proceed further with consideration

of imposing passenger embarkation fees.

(c)

the question of Hong Kong perhaps changing from driving on the left to driving on the right has been put on the back burner.

With my letter of 22 January to Anthony Layden, I enclosed an extract from the minutes of the meeting recording discussion of a paper on the implications for the Hong Kong economy of growing HK/China economic relations, so I need not repeat that here. The other economic paper to be discussed was the quarterly report on HK/China economic relations, for the third quarter of 1986.

It was noted that the Chinese economy seemed likely to reach its GDP growth target of 7% for the year, and that the rate of growth of consumer prices had slowed down. It was felt that the Chinese economy had absorbed the impact of falling oil prices remarkably well. Some effort appeared to have been made to provide credit for projects in the bottleneck areas of energy and communications, but the problems are still likely

CONFIDENTIAL

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