TNAG-1457-FCO40-1981-Relations-between-Hong-Kong-and-China-1986 — Page 21

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26.

According to a report compiled by the

Immigration Department, a total of 1,240 separate PRC official delegations, comprising 4,767 people, visited Hong Kong in the first quarter of 1986. This represents a further significant drop when compared with the fourth quarter of 1985 (1,864 delegations comprising 7,582 people), probably reflecting the tightening of controls on

foreign exchange spending by China. At the end of March 1986, there were 4,297 PRC officials working in Hong Kong, compared with 4,110 at the end of 1985.

Investment

(a) Hong Kong's investment in China

27.

China's requirement of foreign exchange balance within foreign ventures has favoured the establishment of businesses which are capable of earning foreign exchange. Hotel business is a notable example. Over the past few years, Hong Kong businessmen have participated in a number of hotel projects in China. In February this year, another high class hotel was opened, the Nanhai Hotel in Shekou. This is a joint venture between Miramar Hotel and the China Merchants Steam Navigation Co. Ltd. According to reports, the occupancy rate so far has been low. some Chinese cities, the rapid construction of hotels apparently led to a saturation in supply. Reflecting this, Guangzhou has decided to stop granting approval to new hotel projects this year.

28.

In

has

On the other hand, China continues to encourage foreign investment to strengthen the weak links in the

economy. In respect of energy, for example, a joint venture between the Hopewell Group and the Shenzhen

Costaw

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