14.

CONFIDENTIAL #3

iii)

- 7 -

CITIC'S acquisition of a share in CPA was to introduce some of CPA's management

capabilities to CAAC.

para 9: it was noted that Cable & Wireless

were involved in the development of the

optical fibre communications system.

iv) para 15: it was noted that implementation of

the bankruptcy law was still held up because

the law on state-owned enterprises had not

even been tabled at the recent NPC.

v)

para 18:

it was noted that the figures on

foreign investment might not include certain

forms of business co-operation in the Pearl

River delta, such as outward processing

arrangements.

vi) para 22:

PAS(ES)E noted that it was not

clear what exactly was meant by the Chinese

announcement that exchange rates in the SEZS

would be determined to a greater extent by

market forces.

CS suggested that efforts be made to try to establish

figures on the employment created by Hong Kong concerns operating in China. PA noted that the paper gave a percentage breakdown of Hong Kong's share of imports into China, and suggested that there should be a similar breakdown of Hong Kong's share of exports

from China.

Action: SES

G.F. 316

CONFIDENTIAL #

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