TNAG-2527-FCO40-3696-Hong-Kong-China-Relations-Committee-1992 — Page 20

CONFIDENTIAL

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accommodate tankers of up to 200 000 tonnes.

33.

As we had seen a number of port development projects in China in our previous visits, and since the volume of cargo handled by Qingdao had declined (para. 15), we asked whether there was any effort to coordinate competing port development plans in China. Mr. Chang replied that port development in China was coordinated at the national

level by the central government based on forecast of GNP and local demand for shipping

facilities. The central government would decide, from a macro point of view, the port in

which cargo would be exported or imported, and there was, strictly speaking, no competition

between Qingdao, Yantai and Lianyungang. However, he admitted that there was

competition at the micro level in terms of the quality of services provided by each port.

Visit to the Qingdao ETDZ

34.

On arrival at Huangdao, we were received by the Chairman of the Administrative Committee of the Qingdao ETDZ, Mr. Wu Xishan (4), and

then given a briefing by Mr. Sun Wenlong ( ), Director of the ETDZ's Bureau

孫文龍

of Foreign Affairs. We were told that when development of the ETDZ was first conceived,

the municipal government had ruled out locating it in the already congested city district.

The northern part of Jiaozhou Bay was not chosen though land was available because water

was too shallow for the related port development. Eventually it was decided to locate the ETDZ in Huangdao, which was only 4 km from the city proper across the bay with deep water frontage.

35.

The total area of Huangdao District was 152 sq. km. According to the development plan, it would serve a variety of functions, ranging from industrial and

transportation centres to tourist area:

(a) The Huangdao Oil Wharf, which now had an annual handling capacity of 13

million tonnes (Phase I) could handle another 17 million tonnes in Phase II;

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