2

*

had been reached in June (paragraph 2 above), The programme ccemed also to take into account Zhao Ziyang's criticisms on work-style. The main policy objectives were as follows:

(a)

1

(b)

(c)

(c)

(e)

(E)

generally speaking, economic decision-making should be left to the state enterprises them-

selves (rather than the SEZ officials), whether or not they were in partnership with fore: gn investors. Enterprises in the SEZS, including those providing a public utility, should be solely responsible for their own profits and

losses;

enterprises in the SEZs should be granted the right to hire and fire labour and to introduce competitive wage rates;

the SEZs at Shenzhen and Zhuhai should be promoted as "multi-purpose" special zones whilst those at Xiamen and Shantou should cater

for export processing and tourism;

the boundaries of the SEZS should be more clearly

demarcated (the first priority will be to define more precisely the northern boundary of Shenzhen SEZ) and when this has been achieved, all but a few imports would be allowed into the SEZ duty

free:

immigration procedures, especially for foreign and overseas Chinese businessmen wishing to visit the SEZS on a regular basis, should be simplified; the feasibility should be investigated of intro- ducing a special currency for circulation in Shenzhen; in time, a limited number of foreign banks would also be permitted to open branches in

the SEZs.

CONFIDENTIAL

15.

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