Benefit of the Project

CONFIDENTIAL

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5.

The river project has always been a priority item in Shenzhen's infrastructural development programme. An improved navigation channel will not only reduce flooding (which is more severe on the Chinese side of the river), but also improve transportation into Shenzhen proper thus enhancing the

For Hong development potential of the areas along the river. Kong, the project is a prerequisite for alleviating the serious flooding problem in the northern New Territories. Since the Shenzhen River is the main drainage outfall in the catchment area, completion of other drainage improvement projects in the northern New Territories must await the completion of the improvement works in Shenzhen River. regulation of Shenzhen River should thus be a priority item in our Flood Control and Land Drainage Strategy. According to the hydraulic calculations of the Drainage Services Department, completion of Stages I and II of the river project would reduce the water level at Lo Wu by 3 metres in a serious flood. The severity of flooding and the associated economic loss would therefore be much reduced. It is thus also in Hong Kong's interest to expedite completion of the project.

HKG's position

The EIA

The

6.

One major task on the critical path of the programme is the EIA for the project, which was agreed with the Shenzhen side in July this year. The Chinese now claim that the environmental study which they have carried out in 1986 should be adequate for this purpose. The Environmental Protection Department has reviewed that study and concluded that that was only a collection of basic environmental data. It does not attempt to analyse the environmental consequences of the

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