Mayor Yu Youjun announced this to Hong Kong and Macao members of the municipal people's political consultative conference.

The third session of the conference opened in Shenzhen on March 1.

But Yu did not go into details.

He said the city is also seeking to open up some of its other sectors such as financial services, securities, logistics, commerce and tourism earlier than other cities.

China will gradually open up most of its service sectors under its commitments to the World Trade Organization.

Yu said the authorities of Shenzhen and Hong Kong would reach some agreement concerning airport cooperation at a meeting in Hong Kong later this month.

The mayor said during his trip to Hong Kong last year that Shenzhen welcomes share investment in the Shenzhen Airport (Group) Co by the Hong Kong Airport Authority (HKAA).

However, such investment by HKAA is subject to approval by Hong Kong's Legislative Council.

Yu also suggested last year that the two airports should have better division of functions, with Hong Kong handling international flights and Shenzhen concentrating on domestic flights.

The mayor said on March 1 Shenzhen would actively push for the establishment of a special zone at an area along the border between Shenzhen and Hong Kong for high-technology industry. He suggested the area be at least 7 square kilometers.

Establishment of such a zone, however, involves a number of tricky issues such as border controls and allocation of tax revenue.

Some Hong Kong members suggested that Shenzhen, in its quest to become an international city, should enhance its appeal to overseas investors as well as their families by building schools, hospitals and entertainment facilities with international standards.

Yu responded by saying that his city plans to build a few international schools and Western-style catering facilities as part of its efforts to improve its investment environment.

Shenzhen, with the advantages of lower property and retail prices, is attracting increasing numbers of dwellers and shoppers from neighbouring Hong Kong.

Yu assured the Hong Kong members that Shenzhen would continue to develop its traditional manufacturing sectors despite its efforts to attract high-tech and multinational companies.

In the part two decades, Hong Kong companies have moved most of their manufacturing facilities to neighbouring Guangdong Province, with Shenzhen being one of the major destinations.

However, the traditional manufacturers are encouraged to implement technical innovation and to upgrade their products, Yu said.

(China Daily March 4, 2002)