TNAG-2527-FCO40-3696-Hong-Kong-China-Relations-Committee-1992 — Page 9

CONFIDENTIAL

Report on an Official Visit to Qingdao and Dalian

by a Hong Kong Government Delegation led by the Director-General of Industry, 14 19 October 1991

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CRC INF 2/92 (CEC 14/91)

Background to the visit

This report covers a six-day familiarisation visit to Qingdao () and Dalian (it ) in North China from 14 to 19 October 1991 by a Hong Kong

Government delegation led by Mr. T.H. Barma, Director-General of Industry. Representatives from the Trade and Industry Branch and the Census and Statistics

Department also participated in the visit. The composition of the delegation is shown at

Annex I.

2.

The visit was prompted by what the Department had learned in its earlier visit

to Beijing and Tianjin in May this year that not only was Hong Kong a major investor and

trading partner in South China, but also it played a very significant role in the economic

development of North China (CRC INF 9/91, CEC 9/91). We would also like to see for

ourselves how China's much publicised 'open door' economic policy had affected

developments in its industrialised North, particularly when it is widely known that many of

the ailing state-owned enterprises there are plagued by serious operational and cash flow

problems, and are badly in need of re-structuring and renovation.

3.

In both cities we met with the municipal authorities and with the officials

responsible for port development and for the management of the local Economic and

Technical Development Zones (ETDZs). Their mayors also took time out to meet us and

provide us with hospitality, and we took this compliment as a reflection on the importance the two cities attach to encouraging investment from Hong Kong. The visit programme and

a full list of the persons met are at Annex II.

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