CONFIDENTIAL #
Investment
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25
35.
(a) Hong Kong's investments in China
In respect of investment in China's
manufacturing sector, most of the projects with Hong Kong interests are involved in subcontracting arrangement and compensation trade. During the first quarter of 1987, there were more than 70 such new projects agreed in
Shenzhen. Of these, more than 20 projects were
associated with toy manufacturing. A considerable number of projects were also found in electronics, textiles and clothing, and plastics (excluding toys) industries.
36.
As regards larger scale investment projects, it is noted that Hutchison-Whampoa Ltd. plans to enter into a joint venture project with an American aeroplane servicing company and the Guangzhou Branch of CAAC to set up a US$30 million aeroplane repair and maintenance centre in Guangzhou. As regards investment in infrastructural developments, the two projects in Pearl River Delta region mentioned in paragraph 19 both involve Hong Kong interests. The HK$8 billion Guangzhou-Zhuhai Highway, for instance, is a joint venture between Hopewell China Development (Superhighway) and Guangdong Provincial Highway Construction Company. It is estimated that in order for this project to break-even, there has
to be a daily traffic flow of 12,000 long haulage
vehicles using phase one of the tolled superhighway.
G.F. 326
CONFIDENTIAL #
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