布政司署

CONFIDENTIAL

coprent to Mr. Donald

23

GOVERNMENT SECRETARIAT

LOWER ALBERT ROAD

HONG KONG

9 December 1981

香港下亞畢道

本署檔號 OUR REF.: CR1/1161/79 II

來函檔號 Your Ref.:

860 26/1/82

P J Williamson Esq

HKGD,

F C O.

Dear Patuk

INDEX

Hikkoa

RY

W AF

See Hire Otili

041/1

1982 Jeeks

Shenzhen

As part of the continuing process of Shenzhen- watching, I have recently prepared two papers - "Shenzhen: Progress Report" and "Hong Kong-Shenzhen: Traffic Links" which I enclose for your reference.

Attached

2.

The picture of Shenzhen's development remains far from clear. That there is a high-level interest in the Special Economic Zone (SEZ) has been broadcast often enough, but it is extremely difficult to arrive at a consistent or reliable estimate of foreign investment in Shenzhen. This difficulty is reflected in the Progress Report (paragraphs 13-15).

3

At the risk of confusing the picture still further, I note that Guangdong's Governor Liu Tianfu has recently offered his own statistics on foreign investment in the SEZ. According to the local Wen Wei Pao on 4 December, Liu told delegates to the NPC that the Shenzhen authorities had now concluded 914 contracts for cooperative ventures. More than 600 of these, involving some HK$1,200 million foreign capital, were already in operation. If current negotiations over additional contracts prove successful, as much as HK$5,200 million will have been invested.

Yous

Ever

Peter

(P I Webb)

Assistant Political Adviser

cc A R Paul Esq, FED, FCO

P Balmer Esq, D173c, MOD

P Thomson Esq, BTC, HK R F Wye Esq, RD, FES R N Peirce Esq, Peking

CONFIDENTIAL

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