CONFIDENT IAL
-6.
now
by
||
Mr liu said that Dr Wilson, Mr Akera-Jones and Mr Urr had visited Shenzhen recently, but that meetings did not take place often enough. A team from Shenzhen had not visited Hong Kong. I said that I was sure the Hong Kong authorities would gladly cooperate in arranging further visits in both directions and discussing any matter the Shenzhen authorities wished to raise.
14. More generally, Mr Liu said that the population of Bao An commune in 1970 was 280,000, predominantly rural; the population of Shenzhen municipality (successor to Bao An) was 330,000, with the increase mainly in the urban area; 1990, according to present plans Shenzhen would be an industrial city with over 1 million souls. Again on present plans this expansion would take place almost entirely on the basis of joint ventures involving Hong Kong or other foreign investment of capital and technology, and some labour, perhaps not only skilled labour, from Hong Kong. Some of the population might commute in the other direction to Hong Kong, but there were as yet no firm plans. Over 500 groups of Hong Kong and foreign busir esomen
from Japan, Italy, the Netherlands, UK, FKG, Sweden, Thailand, Philippines, the USA and Australia
the USA and Australia had visited Shenzhen, 275 of which had left with agreements to open some sort of new venture. Often the foreign interests were channelled through Hong Kong companies, but sometimes, as in the case of one of the larger factories being built by Sanyo of Japan which would employ over
200 people on assembly of electronic equipment, they dealt direct. The factory I visited (report attached) was at current. levels one of the larger projects, again involving over 200 workers. Most were smaller, employing 30-50 people, often working in the ir own homes. Froducts included at the moment included
car assembly, printing, electrical goods, watches, leather cases, shoes, cotton and woollen clothing, gloves, toys and fish farming. On a general basis, 30% of the initial investment was reckoned as coming from the Chinese side, mainly in the form of land 70% from the foreign enterprise. Products would in the main be exported, at least in initial years whilst the loans were being repaid. In the future larger investments for more ambitious concerns - industrial, agricultural and touristic - would be considered, but at the moment the process was still in an experimental stage. The first big developments would be a tourist centre on the reservoir to supplement the Philippine chalets, and the port and reclamation development at Shekou. 10 detailed decision about either project had yet been taken.
22 April 1980
CONFIDENCITAT
حسناته تنها
K Sullivan
/cc: