2

Wai) complex;

however, later reports have implied

that the new municipality will also include Shekou, Nantou and Futian Communes as well as Shataujiao (Sha Tau Kok), thereby including the whole of the

border area. This ties in with reports that the

effective border is to be moved back from its existing line to a line to the North of the border communes; the border area (i.e. the new municipality) would therefore in practice become a 'neutral' zone.

}

Tourist Development

4.

Reports of development in Shenzhen first

emerged about a year ago. They referred to a plan

to make the area adjacent to Shenzhen reservoir into a

#

tourist resort. The Ta Kung Pao of 23 March 1978

reported that the Shenzhen authorities were planning

The same

to open up the area to Hong Kong and Macau.. newspaper said on 11 March 1979 that the area was to

be turned into a large park, with hotels, a zoo, swimming pools and a children's playground, which would attract between 5,000 and 10,000 visitors a day. This article also suggested that a tourist centre might be established at Futian, opposite Lok Ma Chau, where

tourists could stay for one or two days.

Development of Roads, Railways and Ports

5.

The Wen Wei Pao reported in January 1979

that a two lane highway had been completed from Shenzhen

to Man Kam To.

This led to the "opening up" of the

CONFIDENTIAL. /conta..........................

/contd.......

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