TNAG-2507-FCO40-3648-Official-visits-from-China-to-Hong-Kong-1992 — Page 6

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 2122

OF 141O3OZ AUGUST 92

INFO PRIORITY PEKING

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125565 MDLIAN 5385

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CALL BY GOVERNOR OF ANHUI

13 AUGUST

1. THE GOVERNOR OF ANHUI, FU XISHOU, CALLED ON ME ON 13 AUGUST. HE WAS IN HONG KONG TO ATTEND A SEMINAR ON INVESTMENT

OPPORTUNITIES IN ANHUI. WE HAD A FRIENDLY DISCUSSION ON ECONOMIC

DEVELOPMENTS IN THE PROVINCE.

2.

I TOLD GOVERNOR FU THAT WE GREATLY ADMIRED THE REFORMS BEING

IMPLEMENTED IN THE PRC WITH SUCH SKILL AND COURAGE. THIS BENEFITED NOT ONLY CHINA, BUT HONG KONG AND THE REGION AS A WHOLE. HONG KONG WOULD SUPPORT THIS PROCESS AND, OF COURSE,

BENEFIT FROM IT.

3.

FU SAID THAT ANHUI AND HONG KONG HAD A GOOD ECONOMIC

RELATIONSHIP: THE PROVINCE EXPORTED GOODS TO HONG KONG AND HONG

KONG INVESTED IN ANHUI. NOW THAT THE POLICY OF OPENING UP TO THE

OUTSIDE WORLD HAD BEEN EXTENDED TO INLAND PROVINCES, INCLUDING CITIES ALONG THE YANGTZE RIVER, ANHUI HAD MADE EVERY EFFORT TO DEVELOP ITS INFRASTRUCTURE AND COMMUNICATIONS. THIS WOULD IMPROVE THE ECONOMIC ENVIRONMENT FOR FOREIGN INVESTORS. HONG KONG, HE HOPED, WOULD PLAY AN IMPORTANT ROLE IN THE ECONOMIC REFORM OF THE PROVINCE. CERTAINLY, THE RESPONSE TO THE

INVESTMENT PROMOTION SEMINAR WAS ENCOURAGING. HE WAS SEEKING

FOREIGN INVESTMENT IN TECHNOLOGY FOR A FEW HUNDRED PROJECTS.

AND, AS A RESULT OF THE SEMINAR, A NUMBER OF CONTRACTS HAD ALREADY BEEN SIGNED.

4.

FU SAID THAT IN THE FIRST SIX MONTHS OF THIS YEAR, THE PROVINCE'S GROWTH RATE HAD BEEN 20 PERCENT. STATE ENTERPRISES

WERE IMPROVING THEIR OPERATIONS BY SHIFTING FROM THE CENTRALISED

TO A MARKET SYSTEM. AN EXAMPLE OF THIS WAS THE MA AN SHAN STEEL WORKS, WHICH WAS BEING USED AS A TESTING GROUND FOR A SHAREHOLDING SYSTEM.

FU SAID THAT HE WAS KEEN TO STRENGTHEN THE RELATIONSHIP

BETWEEN HONG KONG AND ANHUI. NOT ONLY HAD HONG KONG MADE ITS

5.

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