*
B.
Shenzhen : Progress Report
This paper up-dates the progress report on developments in Shenzhen which was issued by the Political Adviser's Office on 25 June 1981. A map showing the approximate boundaries of Shenzhen and a list of known foreign investments in Shenzhen are attached (Annex A and B respectively).
Policy initiatives
2.
Interest in the Special Economic Zone (SEZ) as a worth- while economic experiment has been expressed by the highest levels of the Chinese leadership. A high-level conference on SEZS was held in Peking under the auspices of the State Council at the end of June. According to press reports, the meeting was called by the Secretariat of the Party's Central Committee and attended by representatives from no less than 20 Ministries and Departments of the State Council and by delegates from Guangdong and Fujian Provinces. Ren Zhongyi (Party 1st Secretary) and Wu Nansheng (Chairman of the Provincial Commission for SEZs) represented Guangdong.
3.
The Chinese Prime Minister Zhao Ziyang, made a brief "inspection tour" of Shenzhen from 13-16 August and Zhuhai from 16-18 August. He was returning to China from Singapore and would inevitably have drawn a number of comparisons between that
From country's "export processing zones" and Guangdong's SEZs. accounts of his visit to Shenzhen, it is clear that. Zhao reserved his greatest criticism for the degree of official and bureau- cratic interference in economic decision-making. He called for a clearer division of labour between officialdom and enterprise. Such a move, Zhao urged, should include labour reforms according to "economic laws" rather than an iron rice bowl" mentality.
4.
છે
Immediately following Zhao Ziyang's inspection tour, major policy statement on the future development of SEZS was published in the Hong Kong left-wing press. This took the form of a 10-point programme of policy objectives on which agreement
CONFIDENTIAL
*
។