TNAG-0743-FCO40-947-Relations-between-China-and-Hong-Kong-1978 — Page 251

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Department

Trade I distry and

Customs

HIRE BARD

DAILY REVIEW OF BUSINESS TOPICS IN THE CHINESE LANGUAGE PRESS

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Translated by the Trade Industry and Customs Department, Ocean Centre, Kowloon, Hong Kong.-

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NG. 51

Mixed reception to new schemes of joint ventures in China

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DOK OFFICER INDEX

ROL RY

Action Teken

116

Wah Kiu Yat Po in its editorial today (September 29

described the three options open to Hong Kong manufacturers to invest

in China announced recently as "acceptable" to local manufacturers

and said they had removed the worries among the manufacturers.

If these forms of "joint venture" were widely carried out,

Hong Kong manufacturers would be relieved of the pressure of labour

shortage. However, the paper noted, the employment situation of

Hong Kong workers might be adversely affected in future.

The Hong Kong Economic Journal, commenting on the same

subjeơ: today, said it was believed that China's new schemes of joint

venture would bring benefits to both Hong Kong businessmen and China.

To China, the schemes would ensure that China's natural and

human resources would not be wasted and that Chinese workers would

gain new technology and management methods from practical work. This

would help form the foundation of the four modernisation plans, the

paper said.

To Hong Kong manufacturers, cheap factory premises and

labour would be great attractions, it added.

Referring to one of the schemes which stipulated that the

investors should hand back the factories to China after certain years

of operation, the paper said provided that the manufacturers took

this into consideration when calculating the charges for processing,

they would be able to secure enough reserves to set up a new factory

when the agreement with China expired.

Issue Number: 72/78

Date : 29.9.78