TNAG-1048-FCO40-1298-Local-Intelligence-Committee-assessment-of-the-political-sit-1982 — Page 100

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

G.F. 316

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Page No. 4 of 10 pages

12.

The China Resources Co. in Hong Kong, which previously held a virtual monopoly of Chinese trade through the territory, is suffering from the growth in the number of separate trading offices in Hong Kong representing various Chinese provinces and cities (para 10, October 1980 Report). It has made detailed recommendations to Beijing urging stricter control of the organisations concerned.

13.

Following a seizure by the Hong Kong Customs of goods manufactured in China, the Chinese State Import and Export Management Commission has issued a directive that goods manufactured under compensation trade agreements (whereby the foreign partner provides the equipment and materials) are not to be labelled "Made in Hong Kong" Manufacturers however are not required by the directive to indidate a Chinese origin. Presumably in order to avoid embarrassing disclosures, foreign visitors, including Hong Kong Chinese not concerned in the ventures, are to be excluded from the factories.

14.

Further Chinese involvement in the Tin Sui Wai new town development (para 9, September 1980 Report) has come about with the investment by the Guangdong Provincial authorities of $300 m. in the project. One part of the preliminary survey work has been delayed for several weeks because of the unwillingness of the Chinese Security Forces to give clearance for marine surveys at night in Deep Bay and its approaches.

15.

She Kon

Development of port facilities at She Hau by the CMSN continues. The scheme for it to incorporate a logistic base for oil exploration in the South China Sea has been criticised both by officials of the Ministry of Communications and the local communist leadership: a leading advocate for the project, Vice- Premier GU Mu, has recently been replaced. In this connection, the Executive Director of the CMSN has recently left for Beijing.

/ para 16.

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