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CONFIDENTIAL #
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into the area. The authority is considering the
possibility of allowing the Federation to run the site with commercial rules and regulations as similar to those
in Hong Kong as possible. Second, Cavendish International Holdings Ltd. of the Whampoa-Hutchison Group will
participate in the construction of a 2,600 MW power
station in Jiangsu Province, which will be the largest
thermal station ever built in China. The project is
estimated to cost Rmb 1.5 billion. Construction was
scheduled to start before the end of 1988 and the station
to commence operation by end 1990.
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(b) China's investment in Hong Kong
38.
campaign
It appears that the "house-cleaning" (27)
which attained a very high profile in the
last quarter of 1988 has so far not achieved much and the
general atmosphere now seems to be one of "business as
usual". It is widely suspected that the large and
well-established PRC-interest companies may benefit from this campaign because business could become more
concentrated in their hands if some of the smaller
companies have to withdraw from Hong Kong.
39.
First, China
PRC-interest companies' investments in infrastructural and property developments in Hong Kong have recently attracted much attention. International Trade and Investment Corporation (CITIC) increased its shareholding in the Eastern Harbour Crossing to 23.75% from 9.5% by buying from the majority
shareholder. Second, China Resources (Holdings) Co. Ltd.
bought a vacant factory building in Yau Tong for HK$70
(27) This is a campaign with a view to restoring economic
order and discipline, and eliminating malpractices in some PRC-interest companies in Hong Kong.
CONFIDENTIAL
機密