,"
CONFIDENTIAL
機密
8.
In many respects, the SSEZ has become very much
part of Hong Kong's economic hinterland as it depends on
the latter for the provision of capital, of a market for its products, of technical and other expertise/knowledge, and of managerial support in general (paragraphs 32 to
34).
On the other hand, through investing in and
sub-contracting work to the SSEZ, Hong Kong manufacturers are able to reap the benefits of lower wage rates and, to
a lesser extent, lower land costs in the SSEZ for their
production processes. In so doing, the productive capacity of the manufacturing sector in Hong Kong is effectively enlarged, and Hong Kong's more skilled workforce is made available for higher productivity tasks (paragraph 35).
Economic Analysis Division Economic Services Branch Government Secretariat 17 December 1988
GF 323
CONFIDENTIAL **