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4.
:
(ii)
a base from which foreign technology and materials may readily be imported into China;
(iii) a deep water port of international
standard including a container terminal capable of handling third-generation container vessels and with facilities unmatched anywhere on the South China coast;
(iv)
(v)
(vi)
(vii)
an international airport, again with facilities unmatched in South China;
Western international banking and other financial institutions having links with all the world;
a base for companies from the United States, Europe, Australia, Japan etc. which at present are inhibited from establishing themselves properly in China by a lack of adequate international communications and poor accommodation and recreational facilities; and
a model and base from which Chinese companies may learn and experiment with, modern financing, business and production methods.
The value of such facilities to the course of China's economic modernization appears to be increasingly frankly recognized by the Chinese leadership. As a result, new economic links between Hong Kong and China are gradually being forged, complementing well-established patterns of trade (the latter responsible for a long- standing balance of trade in China's favour).
Hong Kong as a base.for foreign investment in China
5.
Hong Kong is well placed to serve as a base for foreign investors wishing to engage in various forms of co-operative enterprise in China. There are a number of arrangements through which the Chinese authorities have sought foreign investment and it is evident that many of these have been reached on the basis of individual agreement. Although attempts are being made to formalize the various agreements, it seems that a good deal of flexibility is still allowed to individual foreign entrepreneurs and the local Chinese authorities.
Joint ventures.
6.
Arrangements for equity participation in an enter-
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