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4。
Detailed figures are not available but remittances to China through local communist banks are reported to have continued to fall sharply (para 6, October 1980 Report). The reason is said to be that, despite official restrictions on the transmission of money and goods into China by private means, they are circumvented without much difficulty, by smuggling or by corruption of Chinese officials.
5.
According to press reports, a loan of US$100 m. which Guangdong Province had sought to raise on the Eurodollar market is now to be made available by the People's Bank of China. This may stem from reluctance to pay current international rates of interest (the rate required by the People's Bank is unlikely to exceed 9%). It is of interest that the funds were available from within China.
Investment
6.
In reviewing foreign investment in China during 1980, NCNA announced that 200 agreements had been signed for "equity" or "contractual" joint ventures in Guangdong. A senior official in Shenzhen said in another review that altogether 490 projects with some element of foreign investment had been initiated in the Shenzhen Special Economic Zone: 70% of them were already in production. 329 are factories manufacturing goods such as knitwear, toys, plastics etc. requiring relatively unskilled labour and unsophisticated plant. There have also been six agreements for new housing schemes.
7.
The foundation stone of the new Garden Hotel in Guangzhou (para 8, April 1980 Report) was laid during the month by the former Party First Secretary in the city. The hotel, which will be financed and initially managed by the Hong Kong firm of Garden
PRC. Hotel (Holdings) Ltd. headed by the pro-communist Hong Kong businessman and former member of the Executive Council, R.C. LEE, will, with 2,350 rooms, be the largest in China and cost $600 m.
/ para 8.
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