Mr Donald
}
HK China
Feari kel
12
CMK Kagili
VIVED IN MARK
CONFIDENTIAL
SEOK OFFICE
REGISTRY
mon Taker
M&
23.7
Mr. Jan
Me seade Мишика
B
9. o.v.
дъя.
23/7/81
сн
HONG KONG AND SHENZHEN SPECIAL ZONE
1.
Sir Philip Haddon-Cave told me this morning that he had heard
from Hong Kong that the Stock Market was full of rumours that the
Chinese authorities were due to announce a new arrangement for the
Shenzhen Special Zone on the following lines:
a)
b)
c)
d)
a boundary would be created to the north of the Zone with controls
for entry and exit into the rest of China;
there would be free movement for people between Shenzhen and Hong
Kong;
a separate currency linked to the Hong Kong Dollar would be used
in the Zone;
investors would be allowed to buy 'leases' of land in the Zone
for 50 years.
2.
Sir Philip and I agreed that some of these points were not new. There
has been a good deal of speculation for some time about free movement.
The currency point I have not heard before.
Apparently the Stock Market
attaches most importance to the point about 50 year leases, seeing it as
a confidence building measure for Hong Kong. The logical argument would
be that it would be unlikely for the Chinese to allow an island of
capitalism between a Communist China and a Communist Hong Kong. My own
view is that there might possibly be some reassurance in this, but I
do not think it really would allay all fears because the suspicion would
still remain that it was intended simply to create one large special
zone including Hong Kong, and I would have thought investors would have
considerable doubts as to the ability of the Chinese to administer it.
However, it may be a step in the right direction if the rumour is true.
/It
CONFIDENTIAL