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company have applied to the Hong Kong Government for permission to operate such a service, they have been told that approval cannot for the time being be given.
Cross-border security talks in Guangzhou
9.
The Political Adviser led a delegation including representatives from Security Branch, Immigration Department, Customs and Excise and the Royal Hong Kong Police to Guangzhou from 5th until 7th May. The purpose of the visit was to further promote coordination of cross-border security measures and to establish regular contacts on such matters. Agreement in principle was reached on the setting up of a cross-border "hot-line" on security matters and the holding of regular, working-level meetings at the border. The agreement has been subsequently confirmed by both sides.
Developments in Zhuhai
10. According to People's Daily of 15th May, the Special Economic Zone of Zhuhai had increased its foreign exchange earnings in 1980 by nearly 32% to more than US$35 million. (For comparison, Governor Liu Tainfu recently told a visitor to Guangzhou that Shenzhen Special Economic Zone had earned an estimated US$190 million in foreign exchange since it was established in 1979).
Agreement on cargo-handling equipment
11.
Agreement has been reached between the China Ocean Shipping Company (COSCO) and the International MacGregor Organisation for the production and servicing in China of a comprehensive range of cargo-handling equipment, hatch covers and "roll-on, roll-off" equipment. The manufacturing plant is located at the Jiangnan Shipyard in Shangha.., although a service centre is also being built at Huangpu (Guangzhou). (It is estimated that COSCO currently maintains a fleet of some 600 vessels, with an average age between 10 and 11 years. The fleet is expected to grow toward 1,000 ships by 1985).
12.
Another agreement entered into by COSCO and a Hong Kong Company, Home-Pack Transport, provides for removal services of household goods to and from cities in China. Since signing the agreement in September last year, Home-Pack's manager has reported his venture successful enough to expand services to additional cities in China.
China's machinery exports
13.0
According to NCNA, China exported machinery and equipment valued at US$720 million in 1980. This accounted for 4% of all exports. In the first four months of this year machinery exports were up 69.7% over the same period last year.
Political Adviser's Office
2 June 1981
Distribution
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PAS(S)Ops (5) Commissioner, London
Mr. Trombon, DIC G INT COLPOIMIL
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