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Nevertheless, a Shenzhen Municipal Secretary, Cao Xizhe, told the Ming Bao Evening News on 8 September that a wire fence wi1 1 be built, together with a SEZ/non-SEZ customs post at Buji,

some 7 kms north of Shenzhen. Cao estimated the costs of these

works to be around RMB 200 million (i.e. about US$115 million).

In view of the expense, it seems unlikely that Shenzhen will be fully fenced-off from the rest of Guangdong in the near future.

11.

Although a number of press reports this summer have interpreted these developments as a desire to move Shenzhen's border with Hong Kong northwards, this seems not to be the real

motive. Certainly the Chinese authorities want to see greater freedom of movement for people and trade between the SEZ and Hong Kong, but the intention in building a fence along the northern boundary of Shenzhen is to seal off the SEZ from the rest of Guangdong. In his press interview, Cao Xizhe said that the main purpose of the fence would be to prevent non-Shenzhen residents living in the SEZ. He disclosed that this was already a problem and that fines levied on such illegal residents had proved an ineffective deterrent. Cao also mentioned the Municipality's concern that if the SEZ becomes a truly import-

free zone it will lose revenue from the collection of customs

duties at Lo Wu (see above paragraph 4 (d)).

12.

Population. Recent visitors to Shenzhen have been told that the SEZ's present population of 71,000 will grow to 300,000 by 1990. This represents a downward revision of earlier targets for 500,000 by 1990 (c.f. "Shenzhen: Progress Report" 25 June 1981, paragraphs 8 and 18).

13.

Foreign investment in Shenzhen. It remains extremely difficult to cite with any accuracy figures on the value of foreign investment in Shenzhen. The most recent, and seemingly authoritative, were given by the Vice Minister of the Admini- strative Commission for Imports and Exports, Zhou Jiannan.

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