While the province's woes have been widely reported, it is rare for a top Communist Party official to paint a grim picture of its prospects to outsiders, as Zhang did in a written speech obtained by The Standard during the widely publicized visit by 59 Hong Kong legislators last week. Zhang told the Hong Kong officials Guangdong faces fierce challenges from the Yangtze River Delta and Baohai-Rim regions.

What Zhang had to say is a major comedown for the province, which received its impetus from Deng Xiaoping, China's late paramount leader, in 1978, when he visited Guangdong and kicked off China's opening to the outside world, which sparked a massive economic boom in Southern China.

Guangdong, Zhang said, is at increasing risk of losing its status as China's most economically prosperous province, its residents' living conditions are deteriorating, and law and order are on the verge of breaking down.

Four days after his speech, SAR and Guangdong authorities agreed on a package to combat food scares and air pollution in the Pearl River Delta and set up a daily direct communication channel. But in his bleak analysis, Zhang, a member of the 24-strong Politburo, surprised the lawmakers and Hong Kong government officials.

"Guangdong has been the nation's pioneer for economic reform in China and a miracle in the eyes of the world ... but, in fact, Guangdong is now in crisis management," Zhang said.

"There are various hidden worries and risks. If we took a wrong step, we might be overtaken by Jiangsu, Shandong, Zhejiang and Shanghai.

"The Pearl River Delta has prospered as the most affluent place in the country, but northern Guangdong is suffering the most severe poverty and underdevelopment.

"Guangdong faces [serious] problems arising from our rapid economic growth. The land area is getting smaller. Water and air pollution is serious and getting worse. We are worried about the safety of what we eat and drink."

Zhang said the province's target of becoming a middle-class society may be an impossible dream, and "in the long run, we may not achieve this."

Adding to the economic and environmental woes, Zhang said: "There is also a security problem in the province. Our open economic reform has attracted nationwide talent to the province, but Guangdong has also become a magnet for pickpockets from all parts of the country. So our social order is another serious problem.

"In the past, Guangdong pioneered economic reform in the mainland and was a model for other provinces. But now we face keen competition from the Yangtze River Delta and Baohai-Rim Region, especially the former which is growing at an intimidating pace."

In a bid to stop the rot, Zhang said he has launched a series of economic, education and infrastructure measures to maintain Guangdong's supremacy in the country.

"We are proceeding on the 11th Five-Year Plan to resolve these pending problems. We are vigorously pushing economic development at the district level, building the top 10 infrastructure projects to alleviate income discrepancies at the grassroots level, upholding the rule of law and defending people's democratic rights.

"We also want to promote civic education to turn Guangdong into a cultural province and build a university city [in Zongshan]."

He added: "Guangdong overtook the once great northeast China 30 years ago as the leading province. But, to be the top province in the next 30 years depends on which province places emphasis on education and nurturing talent and environmental protection."

Zhang displayed economic figures and statistics that demonstrate the close economic ties across the border.

He said that 70 percent of Guangdong's capital and 80 percent of Guangdong's tourists come from Hong Kong, whereas 70 percent of container- truck trade comes in from Guangdong, along with 50 percent of the SAR's tourists.

He stressed that Hong Kong and Guangdong are inseparable in that the province continues to embrace open economic reform.

"Guangdong is the manufacturing base that facilitates Hong Kong's financial, services and shipping industries," Zhang said.