SECRE
Page No. 4 of 11 pages
12.
The Chung Fat Development Co., a Hong Kong firm, has entered into
an agreement with the Shenzhen authorities to build 100 holiday flats in Mirs
Bay. The flats will be advertised for sale in Hong Kong and non-Chinese buyers
will have to use a Chinese nominee. As with earlier announcements of housing
projects in Shenzhen, publicity for this project says that foreigners who
occupy the flats can drive freely to and from Hong Kong. In fact, no request
has yet been made to the Government for facilities for cross border journeys
by private car and, even if it were, it could not be considered for some time
to come.
13.
Two Hong Kong Land Group companies, Dairy Farm and Maxims, have
signed a joint venture agreement with the Civil Aviation Authority of China
to provide air catering services to the CAAC and all foreign airlines serving
Beijing. Much of the equipment to be used will be of British manufacture.
14.
A further joint venture has been entered into by Jardine Matheson,
together with the Swiss firm of Schindler Lift Co. The agreement, which
is of 20 years duration, with the possibility of extension, is with the China
Construction Machinery Corporation and provides for the manufacture,
installation and maintenance of lifts in China. The new company, China
Schindler Elevator Co. will be owned as to 75% by the Chinese, who will
provide the chairman and make available factory premises in Beijing and
Shanghai. The foreign partners will contribute US$4 m. and supply the
technology and management skills. Some of the equipment will be exported
by Jardine Schindlers Marketing Organisation to South East Asia; it is hoped
that the proximity of China and low production costs will result in highly
competitive pricing. An interesting feature of the agreement is that
arbitration of any dispute will be held in the country of the defendant, or
in London under International Chamber of Commerce rules.
15.
The Danish East Asiatic Co. has concluded an agreement with the
China Merchants Steam Navigation Co. to build a ship container manufacturing
plant in the new She Hau Industrial Zone north-west of Deep Bay. The
development of the infrastructure of the Zone is progressing steadily.
SECRET
/ para 16.
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