TNAG-1051-FCO40-1301-China-s-economic-relationship-with-Hong-Kong-1982 — Page 54

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related joint-ventures, non-equity joint-ventures and joint-ventures in Guangdong and Fujian where the respective provincial governments had argued for a lower rate of tax in order to lure greater foreign investment) and land tax.

Guangdong's economy

6.

NCNA's statistics on Guangdong's economic performance in 1980 were released on 14 October. Comparing 1980 with 1978, the following increases were noted: agricultural output up 12.4%, light industry 21.4%, heavy industry 5.6% and foreign exchange earnings 58.8%. The report also revealed that in the Special Economic Zone at Shenzhen some 700 industrial and commercial projects have received some form of foreign investment or are being jointly operated with overseas

firms.

7.

These increases are made to appear more impressive through the choice of 1978 as the base year. Guangdong's economic performance would have increased more markedly (in percentage terms) in 1979, the year in which the Province (along with Fujian) was granted special economic status.

Airport and harbour plans for Shekou

8.

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The Chinese press has once again referred to Shenzhen's planning for a deep-water port and an airport on the Shekou peninsula (c.f. paragraph 10 of Monthly Notes: September). Two possible sites were given for the location of the airport. One was at Xixiang, north of Nantou, and the other, preferred, site was at Hou Hai on the edge of Deep Bay. The latter was used as a military airfield during the Second World War. Mr. Chen Rixin (Chan Yat-sum) a former Chairman of the Heung grand schem Yee Kuk, was cited as the principal intermediary between the hanc habit удавинут Shenzhen authorities and potential investors in Hong Kong.

the waysid Although the press reports have consistently referred to Shenzhen's plans for an "international" airport it seems most unrealistic that the authorities should consider anything larger than an airfield for light aeroplanes.

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