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15.

Page No. 5 of 12 pages

The Chung-Fat Tai-Tung Property Co. of Hong Kong has put up for sale office units in the "Shenzhen International Commercial Building". The company announced that it was erecting the building in agreement with the Shenzhen District Property Company, for completion in 1982. Under the agreement, the Hong Kong partner will provide the capital and architectural and technical expertise, while the Chinese partner makes the

land and labour available. Foreigners as well as overseas Chinese are allowed to purchase. The advertisements in Hong Kong implied that simplified arrangements for cross-border travel between the new offices and Hong Kong were in the

offing

16.

which is certainly not the case on the Hong Kong side.

A commercial testing laboratory in Hong Kong (Labtest (HK) Ltd.) announced that, in co-operation with China National Import and Export Commodities Inspection Corporation, it had recently tested a large quantity of worsted cloth produced in China. The development is indicative of a move by China towards the adoption of international quality

control standards.

17.

The Hong Kong and Shanghai Bank has opened a representative office in Beijing. It already has a branch in Shanghai and a liaison office in Guangzhou.

18.

The Shenzhen Municipal Party Committee is anxious to exercise greater control over the Shekou Industrial Zone and in particular to standardise the preferential treatment given to investors there with that elsewhere in the Special Economic Zone. Shekou is currently administered for commercial

/ and industrial

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Page No. 6 of 12 pages

and industrial purposes by the China Merchants Steam Navigation Co. and YUAN Keng, the Beijing appointed Executive Director of the company in Hong Kong, is likely to resist the committee's

pressure.

Communications

19.

Whereas the scheduled direct air service between Hong Kong and Beijing by CAAC and later by British Airways was not timed to begin until early November, the Carrian Travel Service (backed by the powerful but enigmatic finance group of that name) began a weekly charter service flown by CAAC as part of a seven-day package tour of the capital for Hong Kong Chinese at a cost of $3,000 a head.

Education

20.

In order to allow NG Hong-man, Principal of the Pui Kiu Middle School and the most senior official in communist

education in Hong Kong, to concentrate on other tasks, a Vice-Principal of the school has become responsible for its day-to-day administration. NG spoke to local communist education circles in September about his meeting with LIAO Chengzhi, Head of the Hong Kong and Macau Office, during the National People's Congress. NG had described the difficulties communist education in Hong Kong was experiencing poor quality teachers who changed frequently, limited enrolment and lack of funds. He had asked for financial help. LIAO had

replied that the schools had to support themselves as no such help could be given by China. NG also informed his Hong Kong listeners that one of China's main aims was the acquisition of advanced technical knowledge for the development of its oil

resources and that overseas Chinese experts would be encouraged

to return to China.

A

/ para 21.

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21.

Page No. 7 of 12 pages

The Chinese Language Society of Hong Kong Ltd.,

(an offshoot of the pro-communist Hong Kong University Lecturers' Group para 14, June 1979 Report) is running a tutorial course for teachers in "Mandarin in Junior Forms". Members of the Society sponsored a two-week visit to Hong Kong in October by a member of the Chinese Language Reform Committee in China.

22.

Senior representatives of the Government Schools Non-Graduate Teachers' Union, the Hong Kong Private Anglo- Chinese Schools Association and the Professional Teachers' Union (all United Front targets) as well as NCNA Deputy Director, LI Qixin and senior university and college staff members (particularly from the Chinese University of Hong Kong), were among the guests at a dinner organised by the communist controlled Hong Kong Federation of Educational Workers to celebrate National Day.

The Media

23.

In a typical United Front exercise, the communist New Evening Post recently held a symposium for local writers, especially journalists, of all political persuasions (including one from the KMT).

24.

To provide more competent scriptwriters, the communist South China Film Industry Workers' Union, is to organise courses for the staff of communist film companies. Further diversification plans by the communist film industry include the acquisition of land for commercial and residential development at Shenzhen and the tendering for the supply of duty free goods on the Hong Kong to Guangzhou train service.

/ para 25.

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