TNAG-1051-FCO40-1301-China-s-economic-relationship-with-Hong-Kong-1982 — Page 95

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Hainan to become fourth Special Economic Zone?

8.

There have been signs that the Guangdong authorities will move to

designate Hainan Island a Special Economic Zone. The three existing zones

are Shenzhen, Zhuhai and Shantou. On 2 March, Da Gong Bao carried a dispatch from Guangzhou which quoted Governor Liu Tianfu's views on the

development of Hainan. Liu said that the Guangdong Government would adopt

special policies towards Hainan: "Hainan will be given more power to cooperate with foreign investors.

The Guangdong Government will not

We'll not let the

interfere with it. It must benefit both parties.

other side lose. Only by doing that can we ensure long-term cooperation

The profit tax should be given favourable consideration". He said

that the first to be developed should be transport facilities, by air

and sea.

Cooperation with foreign investors could then be directed towards

tourism and the building of hotels. However, there was also scope for cooperation in poultry farming and the development of Hainan's handicraft

industries. Industrial development should focus on electricity generation

and aluminium mining.

9. NCNA (23 March) and Da Gong Bao (26 March) have subsequently confirmed

that the proposals for a Special Economic Zone on Hainan Island have the

support of provincial Party 1st Secretary Ren Zhongyi.

Quality control of Chinese exports

10.

The number of Chinese products applying for international quality

recognition is increasing as China exports more, according to a spokesman for an international quality assessment organisation, Societe Generale de Surveillance (SCS). SCS entered into a mutual cooperation agreement with the Chinese Commodities Inspection Bureau (CCIB) in November 1979. Under

the agreement CCIB is given the authority to inspect Chinese-made products

on behalf of SGS. The latter's internationally recognised quality survey

is clearly important and valuable to foreign traders. SGS have estimated that in 1980 about HK$1,000 million worth of goods were inspected by SGS/

CCIB in Hong Kong and China.

11.

At a more local level, the Guangdong authorities are stepping up their own scrutiny of quality controls with a view to improving surveys and assessments. The organisation responsible is the Guangdong Products

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