G.F. 326
CONFIDENTIAL # 3
5
In more
Further these transport links feed Guangdong's exports through Hong Kong's local transport network into Hong Kong's container port and other shipping outlets. recent years, the flow of goods in the opposite direction, which consist of products made in Hong Kong and products from elsewhere which are re-exported to China through Hong Kong, has also become very substantial (paragraph 25).
Economic dependence of Guangdong on Hong Kong
10.
Guangdong's success in the past ten years has depended heavily on Hong Kong with respect to funds for investment, markets for products, knowledge of production
Guangdong techniques and managerial support in general.
has become more integrated with Hong Kong through serving as the latter's economic hinterland. This supporting role of Guangdong is likely to continue (paragraph 26). Guangdong's degree of dependence on Hong Kong in respect of international marketing is greater than for production. This is because the Guangdong authorities and enterprises are seriously deficient in international trading experience and knowledge and Guangdong generally lacks both the physical and the institutional
infrastructure which aid the development of international trade (paragraphs 28 to 30).
-
Implications for Hong Kong the possibility of Guangdong becoming a serious competitor
(a)
Short to medium term future
11.
It has been suggested that the movement of capital and of manufacturing operations into Guangdong is not necessarily in Hong Kong's best interests.
Investment
in Guangdong is seen by some as investment diverted away
CONFIDENTIAL #
CURVENTNINGBO MOOSEN
OsmosesESENOSOVO JE Jan,
.....