TPX
40
included some very large projects planned at the end of 1981. These include; first, the development of the Futian New town in Shenzhen, which is expected to cost some HK$2 billion (US$0.35 billion, calculated using the exchange rate at the end of 1981 of HK$5.69=US$1), for which China will provide land and labour, and Hopewell will provide capital funds; second, the building of a 240-kilometre expressway network linking Shenzhen, Guangzhou and Macau, which is expected to cost some HK$2.4 billion (US$0.42 billion), for which China will provide land and labour, and Hopewell will contribute funds and technology; and third, the development of an industrial processing area and scientific and cultural facilities - including a university in
Shenzhen
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which is expected to cost some HK$2.5 billion (US$0.44 billion) and will be financed by
Lian Cheng Enterprises.
51.
It is difficult to assess the importance of direct investments made by Hong Kong residents relative to the total direct investments by foreigners in China. But considering that Hong Kong residents' pledged investments in Shenzhen alone amounted to US$0.46 billion in August 1981 (excluding the three large project listed in paragraph 50) and that the contract value of total foreign investment in China at about the same time was in the region of US$3 billion, Hong Kong's relative share was already quite substantial. In terms of the investment in Guangdong Province generally and Shenzhen SEZ in particular, the contribution by Hong Kong residents is probably crucial.
G.F. 326
CONFIDENTIAL #B
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