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2.
Transport Company of Guangdong and Hong Kong Ltd established in late 1980. The total project cost was HK$450 million.
5. The second project is Cable & Wireless (Hong Kong) Ltd's share in the microwave link between Hong Kong, Canton and Shenzhen. This link is a 50/50 joint venture between Cable & Wireless and the Guangdong Posts & Telecommunications Authority. According to local press reports the value of the original work was HK$14 million.
6. Finally there is also a small fishing fly project in the Shenzhen Special Economic Zone involving the International Fly Dressing Corporation. We have few details on this project but it seems that this is a straightforward processing arrangement with negligible capital investment.
7.
I realise that this information is rather thin. Apart from reflecting the general low level of British investment in China, it is worth bearing in mind that this is still early days for projects of this sort and that such investments are likely to increase - for example, of the British companies represented here, British Shipbuilders, Vickers Engineering and Dunlops are engaged in discussions with the Chinese which may lead to investment. Looking to the future the development of Chinese energy resources both oil and coal, seems bound to attract significant British involvement, much of which could be channelled through Hong Kong. Apart from the involvement of British oil majors in off-shore exploration and production, other UK companies could take equity stakes in on-shore support services joint ventures.
8.
We have discussed this question with Peter Webb who agrees with the general picture given above. I am also copying your letter and this reply to Peking in case they are aware of any investments of this sort which we have missed.
ever,
luch
D M March
Senior Trade Commissioner
CC:
Commercial Dept, Peking (with copy of letter from HKGD)
P I Webb Esq, Assistant Political Adviser, HKG
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