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TRANSACTIONS AND OF THE RANGE OF SERVICES BEING UNDERTAKEN.

15. AN IMPORTANT DEVELOPMENT IS THE INCREASING AMOUNT OF MANUFACT- URING PROCESSING BEING SUB-CONTRACTED BY HONG KONG BUSINESSES IN CHINA, PARTICULARLY IN THE PEARL RIVER DELTA REGION. IT HAS BEEN ESTIMATED THAT UP TO ONE MILLION CHINESE WORKERS ARE EMPLOYED IN THIS WAY TO THE MUTUAL BENEFIT OF BOTH OUR ECONOMIES.

16. TRAVEL BETWEEN HONG KONG AND CHINA ALSO CONTINUES TO GROW. HONG KONG PEOPLE MADE ALMOST 12 MILLION VISITS TO CHINA IN 1986: AND OVER 900,000 OVERSEAS VISITORS TO CHINA TRAVELLED THROUGH HONG KONG. THIS IS NOT A ONE-WAY TRAFFIC. IN 1986, 300,000 CHINESE VISITORS CAME TO HONG KONG FOR BUSINESS, PLEASURE AND FAMILY REASONS.

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17. HONG KONG PLAYS A VITAL ROLE AS A GATEWAY BETWEEN CHINA AND THE REST OF THE WORLD. TRAVEL BETWEEN HONG KONG AND CHINA HAS RECENTLY BEEN MADE EASIER BY BETTER FACILITIES AT THE BORDER AND SIMPLIFIED IMMIGRATION PROCEDURES. FURTHER IMPROVEMENTS ARE BEING PLANNED.

TRANSPORT LINKS WITH CHINA

53. PARTICULARLY IMPORTANT AT THE PRESENT TIME ARE THE IMPROVEMENTS

FROM BEING MADE TO EASE THE MOVEMENT OF PEOPLE AND GOODS TO AND CHINA. ROAD CROSSING FACILITIES WILL SOON BE SUBSTANTIALLY IMPROVED WHICH BY THE LOK MA CHAU CROSSING AT THE WESTERN END OF THE BORDER, WILL LINK DIRECTLY INTO THE NEW TERRITORIES CIRCULAR ROAD. STAGE I OF THE CROSSING WILL BE FINISHED AT THE END OF 1988 AND THE SECOND SPAN OF THE BRIDGE IN LATE 1989. WHEN COMPLETED IT WILL HAVE

AN ACTUAL A CAPACITY OF ALMOST 40,000 VEHICLES PER DAY COMPARED WITH

ΚΑΜ ΤΟ MOVEMENT AT PRESENT OF SOME 9,000 PER DAY AT THE EXISTING MAN AND SHA TAU KOK CROSSINGS.

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54. FOR SEA PASSENGERS, THE NEW CHINA FERRY TERMINAL IN CANTON ROAD WILL OPEN IN MID-1988 AND WILL HAVE SUFFICIENT CAPACITY TO MEET DEMAND INTO THE NEXT CENTURY.

55. CONDITIONS FOR CROSS BORDER RAIL PASSENGERS WERE ALMOST IMPROVED SUBSTANTIALLY WHEN THE NEW TERMINAL BUILDING AT LO WU WAS OPENED EARLY THIS YEAR. A FURTHER EXTENSION IS NOW BEING PLANNED TO COPE WITH ANTICIPATED FUTURE GROWTH IN TRAFFIC. IT SHOULD BE COMPLETED ABOUT FOUR YEARS FROM NOW. OUR ABILITY TO HANDLE THE INCREASING VOLUME OF FREIGHT COMING FROM CHINA BY RAIL WILL ALSO BE MUCH IMPROVED BY THE PLANNED EXPANSION OF THE KCRC FREIGHT YARD IN HUNG HOM BAY.

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