CONFIDENTIAL

Note of a conversation between the Director of Trade, Industry and Customs and Mr. Li Ding, Deputy Mayor. of Shenzhen: Shenzhen Reservoir Restaurant:

4 June 1981

Present:

Mr. W. Dorward,

DTIC

Mr. P.I. Webb,

Mr. Fan Meng-huan,

APATI

Interpreter

Mr. Li Ding, Deputy Mayor of Shenzhen Mr. Liu Jie, Deputy Director, Foreign Affairs Office, Shenzhen

Mr. Jiang Zhenkui, Director of Jiulong

Customs Service

Mr. Peng Peng, Director Shenzhen Foreign

Economic Trade Liaison Office

The conversation at lunch revolved mainly around developments in Mr. Dorward asked what

Were they

the Special Economic Zone since DIIC's last visit.

sorts of instry did the Shenzhen authorities wish to attract. the modern, relatively technically advanced sorts of industry or labour- intensive, industries? Mr. Li replied that both types were welcome. Originally the authorities had put the emphasis on technology and the import of advanced production processes although the pattern had now changed slightly to take

The town itself account of the readily available labour in Shenzhen.

presently had a population of 60,000 and the municipality as a whole, 330,000. The Zone had a continuing need for construction materials (aggregate, cement, etc.) to supply the now rapidly expanding re-development of Shenzhen.

2.

Mr. Dorward specifically raised the question of cooperation by

Mr. Li Hong Kong investors in dyeing and finishing ventures in the Zone. confirmed one new factory to the east of the town, but said there were serious pollution problems concerning which "something will have to be done" before the factory goes into full operation.

CONFIDENTIAL

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