42
53.
(c) Future possibilities
The development of China's offshore oil fields in the South China Sea should open up new opportunities for investment in China by Hong Kong
residents. The Chinese Government has already decreed that support bases and other facilities have
to be located in China. Although Hong Kong firms may not have a great deal to offer as regards the heavy engineering and high technology requirements, support in activities such as shipping, catering, light
engineering and the provision of professional services could well involve Hong Kong firms in some
sort of joint venture in China with Chinese firms.
54.
One of the requirements of offshore oil
development that China may have difficulty in satisfying is in responding rapidly enough to the
demands made by the oil companies and their
contractors.
It also seems likely that Hong Kong firms will find they have something to offer in terms
of supplying specialised services or equipment, although they may have to take steps to develop their
skills to achieve this. In this connection, the
capability of the local industrial sector to adapt to
new technologies and new demands should not be under-estimated and hence it would not be surprising if Hong Kong eventually played an important role in
the forthcoming developments related to oil
production in South China.
G.F. 326
CONFIDENTIAL # 2