TNAG-1051-FCO40-1301-China-s-economic-relationship-with-Hong-Kong-1982 — Page 157

CONFIDENTIAL

Record of Conversation with China Merchants Steam Navigation Company Limited (CMSN) at CMSN Office at Shekou at 11 a.m. on

8 January 1981

Present:

Mr D Akers-Jones Secretary for the New Territories

Dr D C Wilson Political Adviser

Mr P I Webb

Assistant Political Adviser II

Mr Y P Cheng Interpreter

Mr Yuan Geng

Deputy Director of CMSN

Mr Liu Jie

Vice-Chairman

Foreign Affairs Office Shenzhen

Mr Li Jusheng

Second Director NCNA

Mr Tan Gan NCNA

Welcoming the visitors to CMSN's development at Shekou, Mr Yuan gave a brief outline of projects planned for the special industrial zone. Probably the greatest single project had been the construction of a 600 metre wharf that would handle both cargo and passenger traffic. After dredging the maximum depth of five metres at the centre, the wharf would taper to a three metre depth at each end. This would enable ships of between 2,000 and 3,000 tons to use the wharf. However,

However, a tidal difference of some two metres would cause some additional problems. It was hoped that the passenger pier at the North Eastern end of the wharf could be finished within the year.

2.

Mr Yuan also mentioned the telecommunications relay station which the visitors had just seen. In a partnership with Cable & Wireless CMSN would start installing equipment (supplied by US manufacturers) sometime after the Chinese New Year. The station should begin operations in March and be fully operational in May. This radio relay station would facilitate direct dialling telephone calls between Shenzhen and Hong Kong, with operator connected calls between Hong Kong and Peking.

3.

Mr Yuan listed some of the other enterprises planned for the zone. These included, oxygen and acetylene producing plants, steel rolling mills (for producing gas cylinders), aluminium plant, paint factory, containder construction factory and three flour mills (including a biscuit factory and an animal feed mill). He said that careful attention had been paid to drainage, sewage and pollution factors, particularly in view of the valuable oyster farms in the vicinity. He alan mantignad

Anulaty shout the proximity

of Hong Kong's Castle Peak power station and the levels of pollution which it would generate. Mr Akers-Jones said the

CONFIDENTIAL

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