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9.
Guangdong Enterprises Company in Hong Kong continues to expand. It already has a staff of over 100 persons recruited in Hong Kong and is now looking in Guangzhou for office staff and accountants with experience in foreign trade.
10.
Vehicles exported from Hong Kong to Guangdong via the Man Kam To road bridge now number about 900 a month. Most are commercial type vehicles and slightly over half of them are new. Many are sent to Guangdong ostensibly as "gifts" for relatives or friends or for
In such use for joint ventures in the Special Economic Zone. circumstances vehicles are exempt from import duty, but it is probable that many will in fact be sold and re-sold at a profit.
Investment in China
11.
According to Hong Kong communist press reports, there have been major inter-Departmental discussions in Beijing on means by which the preferential treatment for foreign investors in Special Economic Zones can be extended. Guangdong has three such Zones and senior representatives from the Province, including the Party First Secretary, Ren Zhongyi, took part. Regulations have reportedly, been drawn up to allow exemptions from tax and customs duties; to facilitate entry by regular business visitors; to give greater freedom to joint enterprises in employing and dismissing staff; and to provide for improved wages and better conditions of employment. Ren Zhongyi is said to have argued, not entirely successfully, in favour of radical changes in the Shenzhen Special Economic Zone, including its sealing off from the Guangdong hinterland, with check points on all roads, and a special currency within the Zone.
12.
According to a report in another communist newspaper, foreign investment in the 14 joint enterprises in the Shekou Special Industrial Zone now amount to HK$500 m. i.e. more than a fifth of the total invested in the whole of the Shenzhen Special Economic Zone (para 8 May 1981 Report).
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/para 13.
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