TNAG-1051-FCO40-1301-China-s-economic-relationship-with-Hong-Kong-1982 — Page 123

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CONFIDENTIAL

Notes on a visit to Shenzhen by the Director of Trade, Industry & Customs

4 June 1981

The Director of Trade, Industry & Customs paid a one-day visit to

Shenzhen on 4 June to acquaint himself with recent developments in the Special Economic Zone (SEZ) since his last visit almost a year ago. He was accompanied by Assistant Political Adviser 2 and an interpreter, Mr. Fan Meng-huan.

2.

Crossing the border at Lo Wu at 09.50 a.m. DTIC was welcomed by

Mr. Liu Jie, Deputy Director Foreign Affairs Office, Shenzhen, and by

Mr. Jiang Zhenkui, Director of Jiulong Customs Service. The latter explained' that he would rejoin the party at lunch (see separate record), whilst Mr. Liu

accompanied the visitors to factories and housing developments around Shenzhen.

Goodyear Limited/Shenzhen Printing Works

3.

The first visit was to a 40,000 sq. ft. site developed by Goodyear Investment Company Limited of Hong Kong (Hong Kong press reports have put Goodyear's investment at more than US$6 million). The factory was engaged in printing (guidebooks and packaging) under a compensation trade arrangement with

the Shenzhen authorities. A sample product offered was a Hong Kong trade guide

with an introduction in Japanese produced for distribution by the Hong Kong

Tourist Association. The factory and office buildings were spacious, light and

seemingly well appointed but although construction began in 1979, completion

was not scheduled for a further two months or so. Nevertheless, construction

was proceeding with apparently high quality accommodation on site for workers

in the factory. Two 6-storey blocks were being built for male and female

workers, together with a separate block for visiting guests. On site and

locally accommodated workers would eventually total 200.

4.

standard.

The project seemed generally well planned and built to a high

Machinery (for printing, cutting and packaging) had been imported

from Japan and West Germany. Offices were allocated both to a local Chinese

manager and a factory manager from Goodyears (Mr. Lam Sing of Goodyear Printing

Products (China) Limited). Both managers estimated that Goodyear's investment

should be retrieved in three to five years. However at the time of this visit

the factory was certainly not operating to full capacity. Areas of extensive

/factory

CONFIDENTIAL