TNAG-1873-FCO40-2661-Relations-between-Hong-Kong-and-China-1989 — Page 147

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CONFIDENTIAL #2

26

But MOFERT figures released previously suggested that the cumulative value of realised investment in China

undertaken by companies from Hong Kong

(26)

was probably

In a

in the region of US$6 billion, representing about two-thirds of the total outside investment in China. speech given on 12 October, an official from US Department of Commerce claimed that by the end of 1987, the United States had invested US$3 billion in China and was the largest outside investor in China. This ranking of the United States is certainly incorrect unless Hong Kong is excluded because it is regarded as not being a true "outsider".

40.

There have been a number of news items recently about the Guangzhou-Shenzhen-Zhuhai Superhighway. Notwithstanding Hopewell's denial about work progress of the superhighway being disrupted or even stopped, the following appears to be true :

(i)

Due to a change in the design of the highway to dual three lanes from the original dual two (probably at the request of the Chinese authorities) and to increases in construction material prices, the total cost of the superhighway is expected to increase to Rmb 5.2 billion (HK$11 billion, at the official exchange rate) from Rmb 3.8 billion (HK$8 billion), and that of initial phase (from Shenzhen to Guangzhou) to Rmb 2.6 billion (HK$5.5 billion) from Rmb 1.7 billion (HK$3.6 billion). According to the original

(26) Including both local and foreign interest companies

in Hong Kong.

CONFIDENTIAL

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