G.F. 326
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CONFIDENTIAL & B
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products might also be adversely affected. The Hong Kong Government cannot control the activities of the SSEZ
authorities or of Hong Kong investors in the SSEZ, even when these are damaging to Hong Kong's interests, but it should not foster such activities in Hong Kong.
35.
If the integrity of the separation between Bong Kong and the SSEZ is undermined, a likely consequence would be a rapid increase in legal and illegal immigration from China to Hong Kong. To the extent that the growth rate of the population suddenly exceeds significantly the trend growth rate of the population on which the planning of public sector expenditure has been based, an unexpected extra burden will be imposed on the public sector in the provision of services for the community generally and of an improved infrastructure for the economy in particular. Moreover, there would be increased opportunities for smuggling and a higher risk of certificates of Hong Kong origin being falsified for some products manufactured in
the SSEZ.
36.
Apart from passenger traffic, vehicular traffic
between llong Kong and the SSEZ has also increased
rapidly. The recent opening of the new road link with the
SSEZ via Sha Tau Kok in addition to that via Man Kam To
should be able to cope with the cross-border vehicular traffic growth for some time. As a further road crossing will be built at Lok Ma Chau, the three crossings should provide adequate capacity for a good number of years.
37.
Besides a wish to have the SSEZ resemble Hong Kong, there appears to be a hope that in the long term the success of the SSE2 could at least to some extent reduce
CONFIDENTIAL #2
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