TNAG-2507-FCO40-3648-Official-visits-from-China-to-Hong-Kong-1992 — Page 63

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CALL BY THE VICE-GOVERNOR OF GUANGDONG.

SUMMARY

1. THE VICE-GOVERNOR OF GUANGDONG, LU RUIHUA, CALLED ON ME ON TUESDAY (31 MARCH). WE HAD A CHEERFUL EXCHANGE WHICH FOCUSED MAINLY ECONOMIC DEVELOPMENTS. GUANGDONG IS TAKING FULL ADVANTAGE OF THE NEW PRO-REFORM MOOD.

DETAIL

2. LU IS RESPONSIBLE FOR GUANGDONG'S PLANNING, MONETARY AFFAIRS, FOREIGN ECONOMIC RELATIONS AND FOREIGN TRADE. HE IS IN HONG KONG THIS WEEK TO PRESIDE OVER THE FOREIGN ECONOMIC RELATIONS AND TRADE TALKS, A TRADE PROMOTION EXERCISE. HE SAID THAT THE OBJECT OF THE EVENT WAS TO DEMONSTRATE GUANGDONG'S POSITIVE ECONOMIC ENVIRONMENT AND TO PROMOTE FOREIGN INVESTMENT. HE HOPED TO FIND INVESTORS FOR ABOUT 1,000 PROJECTS (COVERING EVERYTHING FROM FOOD PROCESSING AND CHEMICAL PRODUCTION TO RAILWAY CONSTRUCTION). HE SEEMED PLEASED THAT 2,000 PEOPLE HAD PARTICIPATED IN THE FIRST DAY OF THE EVENT AND EXPRESSED GRATITUDE FOR THE HONG KONG TRADE DEVELOPMENT COUNCIL'S SUPPORT IN CO-SPONSORING THE TALKS.

3. LU SAID THAT GUANGDONG WOULD RESPOND TO DENG XIAOPING'S RECENT CALLS FOR FURTHER REFORM. THEY PLANNED TO OPEN UP MORE OF THE PROVINCE TO THE OUTSIDE WORLD. THEY WERE ALSO CONSIDERING SETTING UP A STOCK MARKET IN GUANGZHOU, BUT RECOGNIZED THAT A MORE FULLY- FLEDGED SYSTEM OF SHARE OWNERSHIP NEEDED A MORE MATURE ECONOMY, PLUS A REALISATION BY THE PUBLIC THAT MONEY COULD BE LOST AS WELL AS GAINED BY BUYING STOCKS. TO SPEED UP ECONOMIC DEVELOPMENT, GREAT EMPHASIS WOULD BE PLACED ON FOREIGN TECHNOLOGY. GRADUALLY, LESS ADVANCED TECHNOLOGY WOULD BE MOVED TO THE EAST AND WEST OF THE PROVINCE, LEAVING HIGH-TECHNOLOGY ACTIVITIES FOCUSED IN THE PEARL RIVER DELTA AND THE SPECIAL ECONOMIC ZONES. SINCE 40 PER CENT OF GAUNGDONG'S POPULATION LIVED IN THE MOUNTAINS, THEY WERE LOOKING FOR WAYS TO IMPROVE THE ECONOMY IN THESE AREAS.

4. LU MENTIONED THAT, AS PART OF THEIR RECENT PLANS TO SPEED UP

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