TNAG-2287-FCO40-3290-Chinese-personalities-involved-with-Hong-Kong-1991 — Page 71

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that investment conditions were not generally as favourable as

those in Xiamen, but for selected individual projects they

could be even better. In 1988, private enterprises accounted

for 75% of Quanzhou's gross industrial output. The mayor did

not therefore preside over a traditional State-run economy.

5.

One or two other titbits.

At the banquet Shaoxing

wine was served rather than brandy. The drinking was very

limited. Chen spoke English reasonably well. None of the

delegation can remember which part of China he was from, but he

was a Mandarin speaker rather than a Cantonese speaker. One of

the delegation (who sat next to him at the banquet) recalls

that he had been posted somewhere else other than London

possibly New York or Eastern Europe. Finally Industry

Department visited three factories in Quanzhou, one was a tombstone factory which had been visited by Zhao ziyang in

1983, the other two were a glove factory and a shoe factory

both of which Zhao had graced with his presence about a month

before Industry Department visited.

5.

I spoke to Shu Jianping of NCNA this afternoon on other business. I mentioned the newspaper reports about Chen

and asked whether they were true. He said that "they were very

probably true" but not absolutely confirmed. I asked when we might expect Mr Chen to arrive in Hong Kong Shu said that if the reports were confirmed he would be here very soon.

6.

I also attach a photograph of Chen and an article written by him. These come from the "Guide to Foreign

Investment in Quanzhou" handed to Industry Department.

c.c.

DSB

HSG

SRO

N.D. Moshes

N.D. Moakes

8 March 1991

was

P.S. Anne Shepherd, my predecessor,

with the Industry Department group and compared Chen favourably with

Shaoxiang

As someone to do business with.

Ji

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