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CONFIDENTIAL
China's water and fuel supplies to Hong Kong
124
Water. China first extended an offer to supply water to Hong Kong
in January 1960. After six months of talks between delegations from Hong
Kong and Guangdong meeting at the border an agreement was reached in
November 1960. This agreement allowed Hong Kong to buy 5,000 million
gallons (22.75 million cubic metres) of water, or a little over 20% of its
annual needs from China. After a prolonged drought in the Colony in 1963-
61, when supplies in Hong Kong were restricted to a four-hour supply every fourth day, a further agreement was made with the Guangdong Provincial authorities for an annual supply of 15,000 million gallons (68.25 million cubic metres) at a cost of HK $1.06 per thousand gallons.
!
125
Since 1964 increases in quantity and price have been discussed
and agreed by exchange of correspondence. In 1978 China supplied 144
million cubic metres of water, or about 35% of Hong Kong's total
consumption. On 29 November 1978 a new long-term agreement was signed
between the Hong Kong and Guangdong authorities which provided for increases in the annual supply over the next four years to 182 million cubic metres for the period beginning 1 May 1982. The Chinese
authorities have agreed to hold discussions on increasing the supply
still further'.
Oil.
126
China currently supplies in the region of 23% of all Hong Kong's imports of oil and oil products. This represents a marked
and rapid increase in Hong Kong's dependence on oil from China (in 1973
less than 1% of Hong Kong's oil came from China).
types of oil product:-
China supplies five
CONFIDENTIAL
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/a)
M
83280 D.
*13 200M 2/79 SIS