TNAG-1048-FCO40-1298-Local-Intelligence-Committee-assessment-of-the-political-sit-1982 — Page 77

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Page No. 3 of 10 pages

7.

It has been announced that new by-laws to supplement the regulations on Special Economic Zones in Guangdong (para 8, August 1980 Report) are about to be published. They will cover such matters as foreign exchange, taxation, land tenure, imports and exports, labour and immigration (the last item may throw more light on the proposals for simplified control of cross border movement of businessmen by road which have

for some time been mooted on the Chinese side).

Study of the Hong Kong Economy

8.

According to a press report, the Economics Institute of the Chinese Academy of Social Sciences has established a

branch in Guangzhou to study the economic situation in Hong

Kong and Macau. It will be known as the Hong Kong and Macau

Economics Institute.

Investment in China

9.

An agreement has been signed between Chia Tai Conti Limited of Hong Kong, the Guangdong Special Economic Zones Development Company and the Animal Husbandry Bureau of Shenzhen, whereby the Hong Kong company will construct in Shenzhen battery farms for poultry and pigs, together with an advanced animal feed mill. The project is due to go into operation

later this year and the produce is to be sold locally or exported to Hong Kong and other Far Eastern markets.

10.

Further efforts are to be made to encourage foreign co-operative ventures in the She Kou Industrial Zone. The Bank of China recently established an office there and the China Merchants Steam Navigation Company, as the appropriate authority in the Zone, will be responsible for ensuring that foreign investors are treated fairly and in accordance with

agreements.

/para 11.

G.F. 316

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