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CONFIDENTIAL
010571
MDLIAN
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4. ON HONG KONG'S DETAILED SUGGESTIONS, WE AGREE THAT ZOU JIAHUA IS WORTH WATCHING. AMONG OTHERS, HE HAS BEEN TIPPED FOR PROMOTION TO VICE-PREMIER AT THE FORTHCOMING N P C. BUT I AM UNCLEAR AS TO
PRECISELY WHAT HONG KONG WOULD ENVISAGE GETTING OUT OF A VISIT TO THE TERRITORY BY ZOU. TIAN JIYUN IS RUMOURED TO HAVE SUBMITTED A LETTER OF RESIGNATION, PROMPTED - IT IS THOUGHT BY HIS ASSOCIATION WITH ZHAO ZIYANG. ALTHOUGH HE MAY WELL BOUNCE BACK IN THE NOT-TO0-DISTANT FUTURE, IT WOULD PRESUMABLY BE IMPRUDENT TO OFFER AN INVITATION TO SOMEONE CURRENTLY UNDER A POLITICAL CLOUD. ZHENG TUOBIN IS A BETTER BET, ALTHOUGH HIS CURRENT PREOCCUPATION IS IN LOBBYING FOR SOFT LOANS. THE OTHER
SUGGESTIONS IN TUR LOOK FINE.
5. AGAIN FOR THE FUTURE, WE HAVE TWO OTHER IDEAS WHICH MAY BE WORTH CONSIDERING. IT HAS BEEN APPARENT FOR SOME TIME THAT ONE OF THE MAIN BARRIERS IN CHINA'S MOVING TOWARDS A MORE LIBERAL ECONOMIC SYSTEM IS THE WEAKNESS OF ITS ADMINISTRATIVE SYSTEM, PARTICULARLY TAX COLLECTION. GIVEN THAT HONG KONG'S FISCAL AND ECONOMIC INDEPENDENCE IS FORMALLY PROTECTED BY THE JOINT DECLARATION AND THE BASIC LAW (APART FROM THE SLIGHT WOBBLE IMPLIED BY ARTICLE 106), WE WONDER WHETHER IT MIGHT BE WORTH CONSIDERING AN INVITATION TO THE MINISTER OF FINANCE OR A VICE-MINISTER DEALING WITH TAX MATTERS. AS COMMERCIAL EXCHANGES BETWEEN HONG KONG AND CHINA INTENSIFY EVEN FURTHER, AND AS CHINA DEVELOPS ITS OWN TAXATION SYSTEM, THERE WILL BE MANY PRACTICAL PROBLEMS WHICH WILL NEED SORTING OUT FOR INDIVIDUALS OPERATING UNDER BOTH TAXATION SYSTEMS. ANOTHER CANDIDATE COULD BE THE
MINISTER OF COMMUNICATIONS: CHINA'S PLAN FOR THE DEVELOPMENT OF DEEP WATER PORTS IN SOUTHERN CHINA, AND THE ASSOCIATED INFRASTRUCTURE FOR LAND TRANSPORT, HAVE AN OBVIOUS RELEVANCE TO HONG KONG'S PLANS FOR PORT DEVELOPMENT. ALTHOUGH THERE ARE IMPLICATIONS FOR BOTH COMPETITION AND COOPERATION IN THESE AREAS, A VISIT BY A SENIOR OFFICIAL INVOLVED IN COMMUNICATIONS COULD HELP FOLLOW UP EXPLORATORY VISITS WHICH ARE ALREADY TAKING PLACE
IN THE OTHER DIRECTION.
6. SUBJECT TO ALL THESE POINTS, I WOULD SEE NO PARTICULAR PROBLEM IN PRINCIPLE IN EXTENDING INVITATIONS TO POSSIBLE CHINESE VISITORS TO HONG KONG. HOWEVER, THE CHINESE THEMSELVES MAY HAVE SOME HESITATION IN AGREEING TO VISITS BY THE MORE SENIOR OFFICIALS OF MINISTERIAL RANK: LI PENG HAS ALREADY EXPLAINED THAT MAINLAND OFFICIALS SHOULD ONLY VISIT HONG KONG IF SUCH A VISIT HAS A CLEAR RELEVANCE TO THEIR OFFICIAL RESPONSIBILITIES AND DUTIES. HE HAS ALSO INDICATED A GENERAL RELUCTANCE TO ALLOW THE MOST SENIOR
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CONFIDENTIAL
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