TNAG-1051-FCO40-1301-China-s-economic-relationship-with-Hong-Kong-1982 — Page 155

BY BAG

布政司署

香港下亞厘畢道

Mr. Willia

DESK OFFICER INDEX

本署檔號 OUR Rer.:

SCR 2/4821/78

CONFIDENTIAL

call

АККос

A

XIV.D GOVERNMENT SECRETARIAT

13 FEBLOWER ALBERT ROAD

FIRNSTKONG

Action Taken

15 January 1981

2

PA

see(3

來函檔號 Your ReF.:

My last

P J Williamson Esq

HK&GD

tur fuar.

/12.2.

FCO

helku sak.

Anciberesting report but the new economer Zones do not seem to be getting off the

ground

very

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scem take

Dev Patrick, J9.2. Enching fact administratie problems

Dear

VISIT TO SHEKOU AND SHENZHEN

creating great

Guangdong.

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if informal wo

won about (a) the problem on Thing yi Al and (b) the cargo handling facilities problem By

- cf. This wred cause fretion. Hym

agree I well draft

Initium 23.1.

On 8 January I accompanied the Secretary for the New Territories and the Political Adviser on a day's tour of Shenzhen Special Economic Zone. Apart from the Shenzhen officials we met during the day, we were accompanied throughout by Li Jusheng and Tan Gan of NCNA. I enclose copies of the various records of conversation.

2.

1

We travelled from Hong Kong to Shekou by a China Merchants Steam Navigation (CMSN) Company launch. As you will know, China Merchants have exercised responsibility for the management of Shekou Special Industrial Zone since March 1979. When we asked about Shekou's relationship to Shenzhen as a whole, we were told that it was a special zone within a special zone'. Although the industrial zone is formally subordinate to the administration in Shenzhen, it was clear that CMSN have retained a good deal of independence in its development and management. This seems to have paid dividends. We found progress at Shekou to be rather more advanced than expected. A considerable area of land has been levelled, the 600 metre wharf is practically completed and a number of factories drawing on foreign investment are in various stages of completion (some have opened or are on the point of going into production). The major drawback to the site remains its location; it is adjacent to very shallow waters which, even after dredging give a depth of only 5 metres and therefore suitable only for coastal freighters rather than ocean-going vessels.

3.

Shenzhen, by comparison, seemed to be suffering from a lack of efficient management or concerted purpose. The administrative changes which were effected in order to transform Bao'an County. into Shenzhen Municipality appear to have confused rather than streamlined the rather ponderous bureaucracy. Indeed, the Shenzhen authorities seem on occasion to be left completely in the dark

The astonishment about policies decided at the provincial level. expressed by Huang Ximing over what we had to say about new border bridges was quite genuine and, one felt, typical of the poor communication and conflict of interests between Shenzhen and Guangzhou.

CONFIDENTIAL

/4.