CONFIDENTIAL # 3
According to the latest information, the Chinese
authorities have not yet decided on the exact timing and arrangements for the abolition of the foreign exchange
certificates, of which there are estimated to be a total
of Rmb 0.4 billion in circulation. There is evidence that
the Chinese Government is having difficulty deciding how
to implement this step.
15.
For an individual enterprise in China, the
requirement for self-financing expenditure in foreign
exchange terms is also a vexing problem. To tackle the problem, the Foreign Exchange Control Commission of the People's Bank of China has set up Foreign Exchange Coordination Centres in 35 major Chinese cities. Initially, only Chinese enterprises could participate in
transactions at these centres but the service has now been
extended to several joint ventures. However, according to
informal sources, these centres are not popular and have
attracted only a small amount of foreign exchange
transactions (for reasons, please refer to paragraph 25 of
CRC INF 21/86 on the Shenzhen Special Economic Zone).
16.
As regards the development of the special
economic zones, the value of the industrial output of the Shenzhen Special Economic Zone, at Rmb 1.45 billion in the
first half of 1986, was 13.1% higher than in the same
period last year. Reflecting the shortage of funds, spending on fixed assets and infrastructural development amounted to only Rmb 713 million in the first half of 1986, or 32.7% less than in the same period last year. was reported that 150 projects involving about US$650 million had been delayed or cancelled. It is widely speculated that the proposed international airport at
It
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CONFIDENTIAL # 3