different matter, however. The Government is as concerned about this as any other employer would be. where, occasionally, the departure of a senior officer may lead to a conflict of interest, we will take all reasonable steps to ensure that such conflict does not occur. I would add that, in general, a

reasonable period of saniti

cization should suffice.

Use 16.

se

I welcome the observations of both Mr. Cheng Hon-Xwan

le and Mr. Edward Ho as to the importance for Our future of infrastructural development projects needed to support the continuing development of our economy. We must not, however, let our enthusiasm for major new projects outstrip the ability of the economy or government resources to support them.

le st.

it

Sir, as Members know,

Л

The various airport consultancy studies are well underway. By the end of this year, the findings on the ultimate development potential of Kai Tak and the need and timing for a replacement airport will be available. Other studies on

possible locations for a new airport are continuing. As regards port development, the completion of Container Terminal 7 in 1993 will roughly double existing handling capacities. We will need to take a decision later in the year on the siting of Terminals 8 and 9 in order

in order to keep pace with our expanding port trade. There is no doubt that we will need to invest heavily in both port and airport development if our economy is to continue to grow. The studies now underway will ensure that the issues involved are addressed thoroughly so as to enable the right decisions to be made at the right time.

28.

mentioned

I have noted the comments made by several Members on new Defence Costs Agreement. As you announced on your recent return from London, Sir, we believe that we now have the basis for an Agreement; but there remains a good deal of work to be

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