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OFFICIAL REPLY OF THE STATE COUNCIL CONCERNING THE REQUEST SUBMITTED BY SHENZHEN CITY FOR EXPANDING THE SCOPE OF THE SPECIAL ZONE AND CHANGING THE REGIME OF BAOAN COUNTY

    People's Government of Guangdong Province:

    The Report Submitted by Shenzhen City on Expanding the Scope of the
Special Zone and Changing the Regime of Baoan County, transmitted by your
Province on July 2, 1992, has been received. After studies, an official reply
is hereby made as follows:

    1. We have agreed to abolish the establishment of Baoan County and to
divide it into two districts under the jurisdiction of Shenzhen City. The
detailed procedure shall be handled by the Ministry of Civil Affairs as
required.

    2. With regard to the expansion of the scope of the Shenzhen Special
Economic Zone. At present, Shenzhen City shall mainly take advantage of
various preferential policies which have been granted by the State to the
Special Economic Zone, extend the introduction of advanced technology and
promote the adjustment of the structure of industries and the structure of
products, in order to take the economic development in the existing Special
Zone to a higher level. No consideration should be given now to the
incorporation of Baoan County into the Special Economic Zone. Projects with
foreign investment to be sponsored by Shenzhen City within the existing Baoan
County may, if they conform to the State industrial policies, enjoy the same
preferential policies as enterprises with foreign investment in the Special
Economic Zone, subject to the approval of the competent department under the
State Council.