TNAG-1457-FCO40-1981-Relations-between-Hong-Kong-and-China-1986 — Page 58

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particularly in response to the recent fall in grain output, the reformists have re-emphasized the importance of grain production and the Plan calls for steady growth in the output of staple crops.

17.-

(ii) Expanding and upgrading the

production of consumer goods

The Plan calls for increasing the production of consumer goods, particularly processed food, garments and

consumer durables, and upgrading their quality. Brand

names, high quality and modern designs are attributes

highly valued by the Plan. Industries producing consumer goods are to receive preferential treatment in the supply

of bank credits, foreign exchange, energy, raw materials

and transportation facilities.

18.

By

Housing in towns and cities is to be

commercialized. This is because the previous policy of centralized construction, housing allocation and low rents

"had hampered the solution of the housing problem and imposed an increasing financial burden on the state".

de-regulating and commercializing housing construction and

allowing market forces to determine property prices and rentals, it is hoped that the private sector will be

induced to undertake more housing construction activities.

19.

(iii)

Infrastructural development

The Plan acknowledges the serious problems

caused by insufficient supply of energy and raw industrial

materials, and by poor and backward transportation and

communication systems.

The Plan hence attaches great

機密

CONFIDENTIAL #≈