TNAG-1048-FCO40-1298-Local-Intelligence-Committee-assessment-of-the-political-sit-1982 — Page 76

G.F. 316

SECRET 高度機密

Page No. 2 of 10 pages

3.

Local communist banking and commercial staff have

been briefed on speeches given in Beijing by senior party leaders. The topics included economic readjustment, the

need to maintain economic and political stability in China and the importance of political and ideological education,

(although without undue emphasis on doctrinal issues).

4.

The B.O.C.'s Hong Kong branch has been authorised to do business with South Korea, South Africa, Zimbabwe and Israel, but only through other countries' banks with branches

in those states.

Commerce and Industry

5.

The representations regarding proliferation and competition made to Beijing by China Resources (para 12,

December 1980 Report) appear to have borne fruit. Instructions were issued in January limiting to Guangdong and Fujian Provinces and Tianjin Municipality the right to handle foreign trade through Hong Kong - and then only subject to oversight by China Resources. A plan by Shandong Province to expand its trade was to be implemented by providing additional staff to work within China Resources for this purpose. But the Province was still allowed to hold its own commodities exhibition in

Hong Kong during the month.

Special Economic Zones

6.

The official who has been in charge of the Shenzhen Special Economic Zone only since last August, WU Nansheng, (para 9, August 1980 Report) has been replaced by LIANG Xiang, a former Second Secretary in the Guangzhou Municipal Party, Committee and now a Provincial Vice-Governor. He has apparently been given this key post in an effort to resolve the many difficulties which beset the Zone's development.

{

/para 7.

SECRET 高度機密