CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 3531

OF 23090OZ OCTOBER 89

CONFIDENTIAL

TOP COPY Q DIST?

HK 8

243 /11

102304

MDHIAN 0994

YOUR TELNO 2115: VIETNAMESE BOAT PEOPLE: UK FINANCIAL ASSISTANCE

A. DESIGN CAPACITY. THE INFORMATION YOU HAVE REQUESTED FOLLOWS BY FAX.

B. IT WOULD BE POSSIBLE TO BUILD THE TELEGRAPH BAY CENTRE WITHOUT

ROAD ACCESS BUT THIS WOULD INVOLVE SUPPLYING THE WORKS SITE BY SEA. THE COST OF CONSTRUCTING THE ROAD WILL BE APPROXIMATELY HKD 5 MILLION WHICH IS PROBABLY LESS THAN THE ADDITIONAL COSTS INVOLVED IN

SUPPLYING THE WORKS SITE BY SEA.

C. THE SITE AT TELEGRAPH BAY IS ON RECENTLY RECLAIMED LAND WHICH IS

LIABLE TO SUBSIDENCE. WE HAVE DECIDED THAT THE BALANCE OF ADVANTAGE

LIES IN USING ONLY SINGLE STOREY STRUCTURES RATHER THAN 3 STOREY

BUILDINGS WHICH WOULD NECESSITATE EXPENSIVE SITE FORMATION WORK. THE ESTIMATES ARE BASED ON THE SINGLE STOREY TILDEN TYPE STRUCTURE

WHICH WAS USED AT STAGE 1 OF THE WHITEHEAD PROJECT. A FULL SCHEDULE

OF COSTS ON THE TELEGRAPH BAY PROJECT FOLLOWS BY FAX.

D. NO DECISIONS HAVE BEEN MADE ON THE LONG TERM USE OF THE TELEGRAPH BAY SITE BUT THE MOST LIKELY USE WOULD BE PUBLIC HOUSING. THE TIMING

OF THE LONG TERM DEVELOPMENT IS DEPENDENT UPON THE CONSTRUCTION OF A

NEW HIGHWAY ALONG THE WESTERN SIDE OF HONG KONG ISLAND. OUR BEST

GUESS AT THIS STAGE IS THAT THE SITE WILL BE READY FOR FULL

DEVELOPMENT IN 3-5 YEARS TIME. THIS OF COURSE LIMITS THE LIFE OF ANY

VBP CENTRE WHICH MIGHT BE BUILT ON THE SITE.

E. THE ANNUAL COST OF TRANSPORTING WATER OF TAI A CHAU IS ESTIMATED

AT HKD22 MILLION. THE ANNUAL COST OF TRANSPORTING SEWAGE FROM THE

ISLAND WOULD BE ABOUT HKD20 MILLION.

F. WE ARE UNABLE TO OPERATE A SUSPENSE ACCOUNT TO COVER THE

REMAINING WORKS IN OUR CURRENT PROGRAMME WITHOUT A FIRM INDICATION

THAT FURTHER UK FINANCIAL ASSISTANCE CAN BE MADE AVAILABLE. THE

PRESENT POSITION IS THAT WE DO NOT HAVE SUFFICIENT FUNDS TO COMPLETE

THE WORK ON STAGE 2 OF THE HIGH ISLAND PROJECT. THE ADDITIONAL COSTS

OF THE RECEPTION CENTRE AT TAI A CHAU AND THE FENCING AT SEK KONG

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