SECRET 高度機密

Page No. 3 of 9 pages

Special Economic Zones

8.

Following the Chinese Prime Minister's visit to Shenzhen and Zhuhai, the communist press gave authoritative information on a ten-point programme for the Shenzhen SEZ. It will give effect to the earlier major policy decisions (para 9, July 1981 Report) though the actual regulations have

still to be made. The programme bears out the earlier reports: among other points it confirms that the northern limit of the

SEZ will be demarcated (separate reports refer to the establishment of customs posts and the building of a boundary fence). In addition, the programme provides for the simplification of entry into the SEZ by businessmen from Hong Kong. The possibility of a special currency within the Zone is still being studied.

9.

A survey is taking place with a view to the construction

of a deep water harbour and wharf in Chiwan Bay, on the western coast of the Shekou peninsula. The proposal includes a railway link from the wharf to the main Kowloon-Guangzhou Railway.

10.

The Guangdong authorities are reported to be planning another SEZ in Puso on Hainan Island in order to exploit the latter's mineral and agricultural resources.

Communications

11.

The Hong Kong & Yaumatei Ferry Co. has been given

permission to operate a hovercraft ferry service between Kowloon and the Special Industrial Zone at Shekou. The service, providing two return trips daily, is to begin in September.

12.

More detail has emerged regarding the mooted major highway network to link Guangzhou, Hong Kong and Macau (para 10, July 1981 Report). This huge project, the recovery of the cost of which is planned over thirty years, was reported by the communist press to have been the subject of a letter of intent involving the Guangdong authorities, a Hong Kong company led by Gordon Wu and a Japanese consortium. The latter two groups are supposed to have agreed to

/ invest

G.F. 316

SECRET 高度機密

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