TNAG-1051-FCO40-1301-China-s-economic-relationship-with-Hong-Kong-1982 — Page 64

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Meanwhile, "China Economic News" (14 September) indicated recent agreements on compensation trade (see above paragraph 7(b)) and processing/assembling contracts (see above

In the first half of paragraph 7 (d)) in the whole of China. this year, China signed more than 30 contracts for small and medium-sized compensation trade arrangements, whilst talks on "several dozen" others continue. In the same period, net earnings from processing/assembling contracts came to US$79.31 million (more than twice that for the same period in 1980). Over 2,000 processing/assembling contracts were signed in the first six months of this year by 21 provinces, munici- palities and autonomous regions throughout China.

Plans for an airport and deep-water port in Shenzhen 10. Speaking at the official opening of the Donghu Luyuan (Donghu Garden) housing estate (developed by Hong Kong's Millies Group) on 10 September, a Deputy Secretary of the Shenzhen Municipal Party Committee confirmed that the SEZ had plans to build both an airport and a deep-water port. Deputy Secretary Cao Xizhi said that the State Council had approved the plans but otherwise revealed no other details (earlier reports in Hong Kong's left-wing press have given the site of the proposed deep-water port as Chiwan on the Shekou peninsula and there has been one reference to Xixiang, to the north of Nantou, as a possible site for the airport).

Shantou SEZ development plans

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According to Guangzhou radio on 20 September a meeting was held on 17 and 18 September to promote the accelerated development of Shantou SEZ, set up а SEZ Management Committee, establish the Longhu processing zone and harbour, set up an

SEZ development company, a labour service company, an agricultural development company and a tourism company. The meeting also called for the expansion of marine (passenger and cargo) links with Hong Kong and the introduction of an air service to

Hong Kong.

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