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power station was a good way from Shekou; there would be no problem.
4.
Dr Wilson asked why CMSN had become involved in the development of Shekou, and why they had chosen the site at Shekou. Mr Yuan replied that many of the factories in the zone were connected with CMSN activities, such as ship breaking, oxyacetylene (for welding), the container industry and the paint factory. The second part of the question hinged on economic considerations. CMSN had invested more than $400 million in a site on Tsing Yi Island and yet the Hong Kong Government had still not provided water or electricity for the site. CMSN had also looked for sites in Hong Kong for their ship breaking yard and their paint factory. But land was too expensive. Land in Shekou was cheaper and more economical to develop. Shekou also offered the advantage of sites for building houses and apartments for crew members of the Chinese merchant fleet based in this part of southern China. They numbered some 10,000 seamen.
5.
In response to a question from Dr Wilson about the decision to develop an industrial site on the Deep Bay side of the peninsula rather than the Pearl River side, Mr Yuan explained that the terrain was easier to level on the Eastern side but that consideration could be given to expansion Westwards if the need arose.
It
6.
Although most cargo between Shekou and Hong Kong would be shipped by barge rather than freighter, Mr Yuan said that the real problem was still the inadequacy of wharf facilities in Hong Kong. Mr Akers-Jones explained that land in Hong Kong was in extremely short supply. had been very difficult to forecast the very rapid growth in Hong Kong's trade with China, Planning now took account of this. But, although the Hong Kong Government was actively looking for additional sites, in the short term facilities might be less than ideal.
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Political Adviser's Office Government Secretariat
Hong Kong
13 January 1981
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