NADENIAL
10
19.
An example of the conflict of interests between the authorities
in Shenzhen and those in Guangzhou is of particular concern to the Hong Kong Government (although all such rivalries will have some significance). This is the siting of any future new road bridge across the Shenzhen River. Whilst officials from Guangzhou have indicated their desire to see a second crossing at Lok Ma Chau (some way to the west of Shenzhen town) the authorities in Shenzhen continue to press their case for a new bridge at Man Kam To (for easier access to the built-up area of the SEZ). In going ahead and building
new passenger processing facilities just to the east of Man Kam To, Shenzhen seems to have presented Guangzhou (and probably the Hong Kong Government:) with
a fait accompli.
20.
+
Since
Whatever the reservations over SEZs felt by the Central Secretariat,
it is clear that the Guangdong authorities are eager f lly to exploit the
Province's special economic status with the aid of foreign investment. he became Provincial Party 1st Secretary last year, Ren Zhongyi, has been
calling for even more "flexible" measures for Guangdong including making
the whole of the Province a SEZ. The process has already apparently started, since according to Ta Kung Pao (weekly supplement 11-17 June) Ren recently
told a provincial Party meeting that the status of special economic zone
should be extended to Guangzhou and other cities in Guangdong. In a simi” ar attempt to woo potential investors, Ren also advocated cutting the income tax
levied on foreign businesses operating joint enterprises in Guangdong but outside the SEZ's (i.e. extending the SEZ's tax concessions province-wide).
To an extent this would dissipate the advantages which the SEZs themselves
had been able to offer investors and it is unlikely that the Shenzhen
authorities will view favourably such. a move towards competition from other
cities in Guangdong.
"
Political Adviser's Office
25 June 1981
CONFIDENTIAL