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maintaining the growth of our trade and economy. When terminals 6 and 7 at Kwai Chung have been completed, we shall have to decide where in the general harbour

harbour area further development should take place.

46.

At the same time it is critically important for Hong Kong to have a a first class international airport. Kai Tak has served us well over the years. But it has

limited potential for expansion and must eventually reach its ultimate capacity. Even before that point is reached we must take account of the environmental impact on Kowloon of an airport at Kai Tak developed to full capacity. In looking at possible alternative sites, it is clear that the best sites for a new airport are in the west of the territory, where new roads and other infrastructure can be built to serve both port and airport developments, as well

as well as, possibly,

as, possibly, to provide a new western harbour crossing. We are now commissioning a joint Port and Airport Development Study to advise on the best and most economic solution to these two critical problems. The study will draw on, and put together, all the work which has already been done on harbour, airport and road development. It will be completed by the late summer of 1989. We shall then be in a position to take fundamental decisions about the future development

some

Ca of the territory.

/47.

Clearly

,

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