CONFIDENTIAL
- 9 -
22.
(d)
A 200 km first-class road linking Yantai and Qingdao has been completed.
Other road projects under construction or in the pipeline included: ·
(i) a 300 km expressway to the provisional capital Jinan ( ***),
to be completed in 1993; and
(ii)
a 75 km crescent-shaped expressway encircling Jiaozhou Bay to connect
the Economic and Technical Development Zone (ETDZ) in Huangdao
with the city district, to be completed in 1994.
Qingdao was China's fourth largest port by cargo volume. We were told that
China's largest oil terminal was also located at Huangdao District, serving the Shengli (or Victory) Oilfield () in the south of Bohai Sea ( 渤海 ) (see Annex III). The city's many beautiful beaches, and the old temples in the Laoshan District which
had special significance to Taoism, attracted some 5 million tourists a year.
23.
As in many other parts of China, Hong Kong was the largest overseas investor
in Qingdao. At the end of 1990, out of a total of 161 direct investment projects in Qingdao,
83 were of Hong Kong interest. Total Hong Kong investment, which was found mainly in
the textiles, toys and electronics industries, amounted to US$295 million, or 60% of the total
value of foreign investment. However part of such investments came from companies of
Taiwanese and Chinese interest registered in Hong Kong though their exact amount could
not be established. South Korea was the second largest investor and USA was third.
Japanese investment was small, but enquiries were on the increase.
24.
We were told that Qingdao was vigorously developing the Huangdao District
across Jiaozhou Bay as there was little room for port and industrial expansion in the old city district. Apart from the oil wharf and the 15 sq. km ETDZ, developments in Huangdao would include a new deep water harbour at Qianwan() and major road and railway network linking it with the city district. (See paragraph 35 for details.)
......