TNAG-1051-FCO40-1301-China-s-economic-relationship-with-Hong-Kong-1982 — Page 111

CONFIDENTIAL

14.

8

Future development. The development of the SEZ is certainly

taking shape and the provision of services and the necessary infrastructure

has advanced sufficiently to allow continued expansion. In terms of

future development, the SEZ authorities have talked about encouraging

foreign investment in the following areas:

(a) the production of building materials essential to the

many construction projects presently under way. This

includes the mining of porcelain clay for the production

of building ceramics;

(b) the production of household electrical appliances for

.both foreign and domestic markets;

(c) textile processing, including cotton and wool spinning

and garment making;

(d) development of the food industry to meet the needs of

the growing population of the zone. Produce such as sugar, beverages, cakes, candied fruit and other food

fit for tourists has also been mentioned;

(e) paper-making, including newsprint, writing paper and

packaging. Waste paper from Hong Kong has been

considered as a raw material.

0

15.

Assessment. The former sleepy market town of Shenzhen has fairly

rapidly been transformed into a bustling small city and expanding conurbation. Many of its new factories (built with foreign capital) are impressive by any

standards. The Zone's inhabitants, especially the young, dress more and more

after the styles in Hong Kong (jeans and T-shirts), conspicuously sporting

western-made' sunglasses. Trucks and taxis compete with bicycles for road

space. Consumer goods are appearing in the shops. The general atmosphere

is one of enthusiasm and a sense of purpose.

CONFIDENTIAL ·

/16...

...