CONFIDENTIAL
FM HONG KONG
TO DESKBY 19103OZ FCO
TELNO 3647
OF 19092OZ NOVEMBER 91
CONFIDENTIAL
TOP COPY Q DIST?
250
001675 MDHIAN 2566
po
ико HKD $26
26/1
7674
MY THIRD IPT: LORD CAITHNESS'S VISIT TO HONG KONG AND CHINA: 26 NOVEMBER-7 DECEMBER 1991: HONG KONG'S INVESTMENT IN GUANGDONG AND FUJIAN.
HONG KONG'S INVESTMENT IN GUANGDONG.
1
·
UP TO THE END OF 1990, ABOUT 14,000 FOREIGN-FUNDED ENTERPRISES (50 PERCENT OF THE TOTAL IN CHINA), WERE LOCATED IN GUANGDONG. THESE INVOLVED A TOTAL REALISED DIRECT FOREIGN INVESTMENT OF US DOLLARS 6.6 BILLION, 35 PERCENT OF THE NATIONAL TOTAL HONG KONG HAS BEEN THE LARGEST SOURCE OF EXTERNAL INVESTMENT IN GUANGDONG: PROVIDING ABOUT 90 PERCENT OF THE TOTAL IN TERMS OF THE NUMBER OF ENTERPRISES AND 80 PERCENT IN TERMS OF REALISED VALUE.
2. FOR THE YEAR 1990, THE PLEDGED AND REALISED VALUES OF DIRECT FOREIGN INVESTMENT IN GUANGDONG BY HONG KONG INVESTORS AMOUNTED
TO US DOLLARS 2.1 BILLION AND US DOLLARS 1.0 BILLION RESPECTIVELY. THIS REPRESENTED 78 PERCENT AND 67 PERCENT OF TOTAL
FOREIGN INVESTMENT IN GUANGDONG.
3.
HONG KONG'S INVESTMENT IN GUANGDONG IS CONCENTRATED IN THE INDUSTRIAL SECTOR. HONG KONG BUSINESSMEN HAVE SET UP MORE THAN 6,000 JOINT VENTURE FACTORIES IN GUANGDONG AND HAVE COMMISSIONED PRODUCTION CONTRACTS TO SOME 19,000 LOCAL ENTERPRISES THERE. THESE ACTIVITIES EMPLOY, DIRECTLY AND INDIRECTLY, ABOUT THREE MILLION CHINESE WORKERS. THIS IS SOME FOUR TIMES HONG KONG'S OWN INDUSTRIAL WORKFORCE.
4. HONG KONG'S INVESTMENT IN OTHER SECTORS, SUCH AS HOTELS AND REAL ESTATE, IS ALSO SIGNIFICANT. HONG KONG BUSINESSMEN ARE ALSO ACTIVELY INVOLVED IN GUANGDONG'S INFRASTRUCTURAL DEVELOPMENTS.
EXAMPLES ARE:
(A) THE GUNGDONG-SHENZHEN-ZHUHAI SUPER HIGHWAY (WITH ITS FIRST
PHASE COSTING OVER US DOLLARS 1 BILLION.
1
PAGE
CONFIDENTIAL