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3646
MDHI 7228
WAS SOLD FOR US DOLLARS 630 MILLION. THE STOCK MARKET HANG SENG INDEX THIS WEEK WAS AT ITS HIGHEST LEVEL SINCE LAST JUNE.
8. HONG KONG AND CHINA
DESPITE RECENT POLITICAL EVENTS IN CHINA AND THE ECONOMIC AUSTERITY PROGRAMME, HONG KONG'S ECONOMY REMAINS INEXTRICABLY INTERTWINED WITH THAT OF SOUTHERN CHINA, ESPECIALLY GUANGDONG AND THE NEARBY SPECIAL ECONOMIC ZONES. TWO MILLION WORKERS ACROSS THE BORDER ARE EMPLOYED BY HONG KONG MANUFACTURING COMPANIES, AND THE INFUSION OF HONG KONG INVESTMENT AND MANAGERIAL SKILLS INTO THESE ZONES INCREASINGLY MAKES THE AREAS IMMEDIATELY ACROSS THE BORDER MORE AND MORE RESEMBLE HONG KONG.
9. CHINA AND HONG KONG HAVE BECOME EACH OTHERS LARGEST TRADING PARTNERS. ALTHOUGH MANY HONG KONG MANUFACTURERS ARE NOW TRYING TO PUT SOME OF THEIR INVESTMENT EGGS IN SOME OTHER BASKETS E.G. THAILAND, MALAYSIA AND INDONESIA, NONE ARE AS CONVENIENT AS A SOURCE OF AVAILABLE LAND AND CHEAP LABOUR AS THE NEIGHBOURING AREAS OF CHINA. CLEARLY THE GREATER ECONOMIC BENEFIT HONG KONG AND CHINA CONTINUE TO DERIVE FROM EACH OTHER THE GREATER THE PROSPECTS FOR A SMOOTH TRANSITION THROUGH 1997.
10. PROJECTS
THE MOST DOMINANT FEATURE OF THE HONG KONG ECONOMY AT PRESENT ARE THE MAJOR PROJECTS. FOREMOST IS THE NEW AIRPORT WITH ITS RELATED ROAD, RAIL, BRIDGE AND PORT DEVELOPMENTS, TO A TOTAL VALUE CONSERVATIVELY ESTIMATED AT POUNDS STERLING 10 BILLION. TRAFALGAR HOUSE/COSTAIN AND MITSUI, NOW WORKING TOGETHER AS THE ANGLO- JAPANESE CONSTRUCTION COMPANY, ARE ACTIVELY PURSUING, WITH OUR OFFICIAL SUPPORT, MAJOR PARTS OF THE WORK AND ARE VIEWED BY MANY AS THE LEADING CONTENDER FOR THE BRIDGES, ONE OF WHICH IS LIKELY TO BE THE LONGEST SINGLE SPAN SUSPENSION BRIDGE IN THE WORLD. THE FIRST CONSULTANCY CONTRACTS ARE ABOUT TO BE LET. THE PROJECT MANAGEMENT CONTRACT WILL PROBABLY BE AWARDED DURING MR MAUDE'S VISIT TO BECHTEL OF THE UNITED STATES. TO HAVE THE AIRPORT OPENED BY ITS FREQUENTLY REAFFIRMED TARGET DATE OF JANUARY 1997 WILL REQUIRE A CONCENTRATION OF RESOURCES, FINANCIAL, MANAGERIAL AND MANPOWER, THAT HAS NEVER BEEN SEEN BEFORE IN HONG KONG (NOR SCARCELY ANYWHERE ELSE). TO SAY IT IS AN AMBITIOUS PROJECT IS A CONSIDERABLE UNDERSTATEMENT.
11. THERE ARE COUNTLESS OTHER MAJOR PROJECT OPPORTUNITIES IN HONG KONG IN THE NEXT FEW YEARS, PARTICULARLY IN AREAS WHERE BRITAIN HAS TRADITIONALLY DONE WELL SUCH AS POWER GENERATION AND TRANSPORT.
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