Guangdong Governor Lu Ruihua has called for greater co-operation with Hong Kong and has singled out information technology as a priority for joint development. Speaking to the South China Morning Post during a wide-ranging interview in his office in Guangzhou, Mr Lu said close cross-border relations were needed to ensure the efficient development of infrastructure links. The interview came as the Post opened the first reporting office in Guangdong for an English-language news organisation. Mr Lu said the task of developing software and hardware for the rapidly expanding information technology industry should be split between the two areas. He said the SAR and Guangdong should each specialise in different areas, ensuring a minimum of overlap. Turning to the region's financial crisis, Mr Lu predicted direct foreign investment in Guangdong, much of which comes from other parts of Asia, would fall 10 per cent this year. However, he said he was hopeful investment by European and US multinationals would increase. The Post's Guangzhou office will be staffed by Matthew Miller, who has reported on Chinese business from Shanghai and Hong Kong. Post editor Jonathan Fenby said: 'Given the importance of the links between Hong Kong and Guangdong, we regard this as a very important addition to our reporting network in China which will enable us to keep readers even better informed about developments on the mainland.'