CONFIDENTIAL

Entein

19

my

Current Hong Kong-China Economic Developments: Monthly Notes:

November 1981

SEZ regulations passed

Five sets of provisional regulations regarding Guangdong's

Special Economic Zones (SEZs) were passed at the 13th Session of

the Standing Committee of the provincial People's Congress held

between 12 and 17 November. Three of the five are provisional

regulations applying to all three SEZs in Guangdong and cover

"labour and wages", "entry and exit" and "enterprise registration.

The remaining two apply only to Shenzhen and cover "land" and

"administration."

2.

The regulations are expected to be officially promulgated

and put into effect after approval by the Standing Committee of

the National People's Congress.

Shenzhen "new-town" plan

3.

On 23 November a contract was signed between Mr. Gordon Wu

(for Hopewell Holdings Ltd. of Hong Kong) and the Mayor of Shenzhen, Vice-Governor Liang Xiang, for the development of a 30 sq.km. site in the SEZ as a "new town." The agreement covers a period of 30

years and anticipates an initial investment by the Hong Kong company

of some HK$2,000 million (although according to press reports total

investment could reach HK$10,000 million). On 12 November,

Liang Xiang told the Standing Committee of the provincial People's Congress that the first phase of Hopewell's project would include the construction of "a railway station, a road from Huanggang to Lok Ma Chau, a number of bridges, gasworks, waterworks, transformer substations and an office building for the SEZ government."

Hkk 091

Rika at KROGIRY NO. 31

INDSY

No

16 DEC1981

196

16/12

Pao 16/10

CONFIDENTIAL

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