TNAG-1051-FCO40-1301-China-s-economic-relationship-with-Hong-Kong-1982 — Page 110

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(e) Nantou-Shangbu area. This area is intended for special non- industrial development, including research institutions, hospitals and high-priced residential development; the

authorities aim to maintain a "campus-like" atmosphere.

(f) Shekou. The Special Industrial Zone at Shekou lies within

the boundaries of Shenzhen SEZ, but as a "zone within a

zone", has been developed and managed by the Hong Kong-based China Merchants Steam Navigation (CMSN) Co. Ltd. CMSN is a

wholly Chinese-owned company, 60% of its shares being held

by the Ministry of Communications. Foreign investment at

Shekou is, however, governed by the same laws on joint-

ventures and regulations on the SEZ's (see above paragraphs 3 and 4(a)) as investment elsewhere in China. Since work on providing the necessary infrastructure has progressed relatively smoothly and quickly, agreements have been reached

on a number of industrial projects involving foreign capital (from Hong Kong, Denmark, the Philippines and Switzerland).

These include:

China-Swiss Construction Machinery Repair Plant

P

i)

ii)

Zhonghong Oxygen and Acetylene Plant

iii)

Haihong Paint factory

iv)

Huamei Steel plant

v) China International Marine Container Plant

vi)

Huayi Aluminium rolling mill

vii)

Jianghui Pleasure-Boat yard

viii)

A ship-breaking yard

ix)

A Flour mill

x)

A Biscuit factory

xi)

T

now open

open soon

open within the next year

Animal-feed mill

According to China Economic News (8 June) the tenure of a

joint enterprise at Shekou is about 25 years, although

extensions will be negotiable. The current annual land rent is HK$2-4 per sq. ft. (A development plan of Shekou, from CMSN's "Investor's Handbook" is at Annex E).

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