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16.
Economic development, with its land clearances and new
construction works, also lends an air of chaos. The question is whether
the development is soundly planned or whether a more fundamental confusion ·
underlies the somewhat haphazard way in which progress is being made. In
this regard, it is surprising that no development plan for the SEZ has yet
been published (in contrast to CMSNS early publication of a plan and
"Investors Handbook"). There is evidence that a number of levels in the
Chinese bureaucracy are still hesitating before fully committing themselves
to the concept of a SEZ and the plan is therefore being delayed.
For example,
the first edition of the Hong Kong newspaper, Zhengming Ribao, on 18 June
reported a recent meeting of the Secretariat of the CCP Central Committee in
Peking to discuss the SEZs in Guangdong and Fujian. The report said that
the meeting considered the greater "liberalisation" or even "Hong Kong-isation"
of Shenzhen which would turn the SEZ into a truly "free port", exempt from
import and export tariffs (speculation about Shenzhen's becoming such a "free-flow" Zone has appeared elsewhere in the Hong Kong press). The plan
for even greater economic independence for Shenzhen was not accepted by the Central Secretariat, said Zhengming. The newspaper nevertheless cited Deng Xiaoping to the effect that any measure (for the development of SEZs)
should be considered, so long as it does not compromise national sovereignty.
The debate between centralism and devolution is clearly central to the
concept of the SEZ.
17.
In the absence of an overall plan for development, Shenzhen SEZ will inevitably be the subject of bureaucratic confusion and rivalry between different levels of the Chinese decision-making process. Upper levels will
jealously guard their authority and adopt something of a patronising attitude towards the competence of local cadres and administrators.
18.
The confusion over planning seems likely to affect the earlier (local) projections on population growth within 'Shenzhen and the target of 500,000 for 1990 will probably be revised downwards. Nevertheless, it is striking that the balance between residential and industrial development has swung markedly towards the former, with multi-storey apartment blocks under construction throughout the SEZ.
CONFIDENTIAL
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