G.F. 316

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Page No. 4 of 11 pages

Shipping

10.

During 1980, a total of 190 vessels controlled by the China Ocean Shipping Company came to Hong Kong for repair and maintenance. It has been predicted that this number will fall to about 90 during 1981 as a result of the implementation of a bonus pay system to workers in Chinese dockyards which has improved their efficiency. This predicted reduction in the number of Chinese ships reliant upon the maintenance and repair facilities in Hong Kong may have an adverse effect on Hong Kong's ship-repair industry. However, the new Chinese system of bonus payments has been criticised as a factor causing a large deficit in the state budget and the funds allotted for bonus payments may be reduced with a consequent fall in the efficiency of the Chinese dockyards.

Tourism

11.

The Chu Kong (Pearl River) Shipping Company Ltd., which became a representative shipping company of Guangdong Province in Hong Kong in late 1980 has formed a company in Hong Kong entitled the Ching Mei Travel and Trading Company without the formal approval of Guangdong Enterprises Ltd. (GEL), the official provincial trading representative company in Hong Kong. The wife of the Managing Director of GEL, who is Manageress of the Guangdong (HK) Tours Company, wishes to form a joint venture travel agency with the Chu Kong Company despite this lack of approval. Her company is making a profit and she also plans to operate half day tours to Shenzhen

via Macau.

Cross-border motor-coach services

12.

The long-delayed cross-border coach service between Hong Kong and towns in Guangdong seems finally to be ready to commence in the first week of June. The Motor Transport Company of Guangdong and Hong Kong Ltd., (Inchcape/Guangdong Province Partnership) told the Secretary for the Environment in mid-April that the passenger- processing facilities on the Shenzhen side of Man Kam To were now

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