CONFIDENTAL
- 3 -
7
Towards the end of July, a great deal of publicity was given to an extremely ambitious project for the construction by overseas developers of a highway system linking both Zhuhai SEZ and Shenzhen SEZ with Guangzhou, During a conversation with HE the Governor on 26 October, Provincial Party 1st Secretary Ren Zhongyi confirmed that a "letter of intent" had been signed by the overseas developers and that a feasibility study would be conducted. The prime mover behind this project appears to bt the Hong Kong businessman Gordon Wu who has described the agreement as spread over 30 years and under which his own company (Hopewell Holdings Ltd.) will invest HK$500 million; a "Japanese consortium" HK$2,000 million and China the remainder. Wu claims that the investments would be recovered through toll charges. This seems an optimistic claim (the attached map, provided by Wu, indicates the proposed route:
Annex B).
8.
At about the same time, publicity was also given to a more modest proposal for the improvement of the existing Macau to Guangzhou highway by the construction of four bridges to replace river-ferries. Henry Fok's Nam Luen company has signed a "letter of intent" with the Guangdong authorities for the construction works. Fok has apparently agreed to lend some HK$120 million repayable at 6% rate of interest once the bridges were complete. Nam Luen would also be allowed to recover costs through toll charges for a period of ten years. It is clear from such an arrangement that Fok's capital will be a gift rather than a commercially sound investment.
Rail
9.
At present, the Hung Hom to Lo Wu section of the Kowloon Canton Railway is served by one train per hour normally and by two trains per hour at peak periods during a 12-hour working day. Each train can carry between 1,800 and 2,000 passengers.
COMEDENTIAL -
/Since