Encl. 2

CONFIDENTIAL

2

3.

Although, inevitably it has taken time for

the industrial estates to get moving, they do now appear

to be the best way in which a policy to encourage the

establishment of higher grade industries can be imple-

mented in Hong Kong. One advantage is that the full

time staff of the Corporation can give their undivided

attention to the development of the estates and to

applications for land. The industrial estates could

well be a useful vehicle for Chinese investment,

although it may be that the facilities which they

offer can be easily and more advantageously duplicated

in Shum Chun.

(B) Chinese Interests in Land, Wharfage, etc.

4.

At Enclosure 2 is a summary of land applica-

tions by Chinese interests in Hong Kong which may be

useful for reference purposes.

5.

Wharfage. This is probably the area in which

Chinese organisations feel most frustrated by the Govern- ment's present policy of treating them as just another commercial operator, and rigidly sticking to the policy of running as much as possible of the cargo handling wall as Public Cargo Handling Areas controlled by the

Director of Marine. The object of the policy is to get

the optimum use out of the available cargo handling walls, but the Chinese do not like this, because they want to run their own operation without being involved with the Director of Marine, etc. If they really want

CONFIDENTIAL

/to.

• A

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