PJMAFO

CONFIDENTIAL

VISIT OF THE SECRETARY OF STATE TO HONG KONG: 29-31 MAY 1988

C.

MAJOR DEVELOPMENT PROJECTS IN HONG KONG

[Background Brief by Hong Kong Government]

PUBLIC SECTOR

1.

Government capital expenditure in 1988/89 will total

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HK dollars 6,770 million, excluding expenditure on public housing. As in previous years, about half is being devoted to infrastrucutre

and facilities in the new towns. Three of the these Tsuen Wan,

Sha Tin and Tuen Mun are well over half-completed. Tai Po, Yuen

Long and Fanling new towns are also well advanced. The first housing in Junk Bay has just been occupied. Formation work is just starting in Tin Shui Wai in the North-Western New Territories.

2.

Approximately 40,000 public housing flats, for rental and sale mostly in the new towns, are expected to be constructed this year,

at a cost of about dollars 5 billion. About 30,000 private sector

flats are also expected to be built.

3.

Other major public sector projects now in progress are the

following:

(a) a 1,600 bed hospital in Tuen Mun is nearly completed and

will be opened at the end of 1988. Work on another 1,600 bed hospital in the Eastern district of Hong Kong Island is just

starting, for completion in 1992;

(b) the new Cultural Centre in Tsim Sha Tsui is scheduled for

completion in October 1988;

(c) the University of Science and Technology will begin

construction in 1989 with a view to a first intake in 1991.

CONFIDENTIAL

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