TNAG-1624-FCO40-2238-Relations-between-Hong-Kong-and-China-1987 — Page 161

CONFIDENTIAL #

Report on developments

CRC INF 13/87

(CEC 7/87)

in Hong Kong-China economic relations

second quarter of 1987

General economic developments in China

The Chinese economy continued to grow rapidly in the second quarter of 1987. The gross value of industrial output in the second quarter, at Rmb 266 billion (at

constant 1980 prices), was 15.8% higher in real terms than

in the same quarter last year. For the first half of 1987

as a whole, the value of industrial output, at Rmb 493

billion (at constant 1980 prices), was equivalent to 51.6%

of the annual planned output and was 15% higher than in

the first half of 1986. This rate of increase was twice

the target growth rate, at 7.5%. As regards agricultural production, the summer crop yield totalled 90.8 million tonnes, 2.4 million tonnes less than the corresponding

yield in 1986. Unfavourable weather conditions and floodings in some parts of China contributed to this

decline. In addition, the rapid loss of cultivated

(1) land , coupled with a slackening of efforts in maintaining irrigation and flood control facilities in

(1) Over the past two years, China lost 24.5 million

acres of cultivated land. This loss was equivalent to the total arable land available in the Fujian Province.

CONFIDENTIAL # Z