Hong Kong would be assured of a steady oil supply;
it would be unfettered by prices, either posted or spot, set outside Hong Kong;
if supported by a refinery and a petro-chemical industry, Hong Kong could become largely self sufficient in hydro- carbon oil products (including semi manufactures for many of its industries), or could use oil products refined in Hong Kong to trade, as it were, with other oil producers for the hydro-carbon oil products it needed;
it would undoubtedly save foreign exchange. (In 1979 the value of imports of hydro-carbon oils and plastics raw materials is likely to be about $7,000 million).
not true. Surely -
of: N. Sea Oil.
The disadvantageous implications of
an oil discovery in Hong Kong
6
While it is true that the economic benefits mentioned in paragraph
5 above would be considerable, there are some possible consequences of
a local discovery of oil, both practical and political, which need to be carefully weighed in the balance in deciding whether to grant any prospecting licence for mineral oil in Hong Kong.
7
To reap the full benefits from a 'find', as outlined in paragraph 5(c) above, the Government would have to make land available on an extensive scale, and it is doubtful whether adequate space for a compre- hensive oil industry as such could be provided.
8
Even if sufficient land could be found, there are serious political implications to be considered. In the unlikely event of oil being discovered in Hong Kong, it is highly unlikely that the oil field would be contained neatly within the limits of the square boundary. Part of any field would inevitably stray into Chinese territory. This would raise questions about boundaries which in turn would impinge on the status of Hong Kong. It is not in the interests of Hong Kong that these questions should be provoked.
Previous applications to prospect
9
In the case of five previous applications to prospect for oil between 1962 and 1976, all were refused on the grounds that no mining legislation had been enacted in Hong Kong for the grant of licences, leases or concessions for the exploration and exploitation of mineral oil. In three instances the additional reason was given that geological informa- tion then available indicated no petroleum or natural gas resources within the boundaries of Hong Kong.
SECRET