TNAG-2527-FCO40-3696-Hong-Kong-China-Relations-Committee-1992 — Page 22

CONFIDENTIAL

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including 27 from Hong Kong. The largest Hong Kong investment was a short polyester fibre factory. Other Hong Kong investments included textiles, toys and leather belts.

37.

Mr. Sun also gave us a run down of the preferential treatments available to foreign investors in the ETDZ, such as tax exemptions and reductions, but they were not any different from those offered by other open coastal cities and SEZs.

38.

We also toured the ETDZ and went to a beach in Xuejiadao. Our general

impression was that the zone was not yet very well developed at present, and that it would only take off when the new port and all the road and railway connections were in place.

Visit Activities on 16 October (Wednesday)

Factory Visit - Qingdao No. 2 Brewery

39.

The delegation visited Qingdao Brewery Co. Ltd (No. 2) ($$$)

which produced 'Tsingtao Beer' (), and the Laoshan District before leaving

for Dalian.

40.

We were first received by Mr. Zhang Guang'ai ( ), Director of the brewery. He told us that Qingdao's beer industry was started by the Germans some 90 years ago. 4 breweries in Qingdao authorized to produce the reputed 'Tsingtao Beer', including Qingdao Brewery No. 1, No. 2, No.3, and No.4. The No. 1 brewery had the longest history and was the largest; the No. 2 brewery was under trial operation and the No. 3 brewery, a Taiwan-China joint venture, was still at the planning stage; the No. 4 factory had just been acquired by the No. 1 factory as its subsidiary. Beer was also produced by other breweries in Qingdao. Total beer production reached 700 000 tonnes a year, of which 500 000 tonnes were produced under the "Tsingtao' brand. Although there were as many as four breweries

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