TNAG-1051-FCO40-1301-China-s-economic-relationship-with-Hong-Kong-1982 — Page 149

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resorts), investment is relatively small-scale, light industrial and part processing enterprises is apparently growing. The most popular form of investment at this stage is compensation trade. NCNA reported, on 29 December 1980, a statement by the Deputy Director of the Shenzhen External Economic and Trade Relations Office, He Yao, that a total of 490 enterprises had been established in the SEZ using some form of the three basic modes of foreign participation. The report notes that 70% of these enterprises are already in production whilst the remainder are still under construction. Of the 490 concerns, 329 are factories making woollen knitwear, clothing, toys, plastic and silk flowers, radio cassettes, building materials, hardware and other goods as well as vehicle and machine repair shops.

Political Adviser's Office Government Secretariat

Hong Kong

3 February 1981

CONFIDENTIAL