10
REVIEW
expansion of the airport's terminal facilities; detailed studies and preliminary work on the construction of a new reservoir, similar in concept to the Plover Cove scheme, at High Island in the Sai Kung peninsula; and raising the height of the dam at Plover Cove to provide greater storage capacity.
A start was made during the year on two other projects, both undertaken by private concerns and both of major importance to the Colony. The first was the cross harbour tunnel which will pro- vide a road link between Hong Kong Island and Kowloon. It is estimated that it will cost in the region of $300 million and that the tunnel will be completed in September 1972. There were some initial difficulties but good progress had been made by the end of the year.
The second project was the introduction of 'containerisation' to Hong Kong. It has become clear that if Hong Kong is to maintain its position as a major international port it must follow the growing trend towards this method of cargo handling. A site for three con- tainer berths at Kwai Chung to the north-west of Kowloon was sold by tender and two wharfage companies in the Colony modified part of their premises for use as container berths.
In the economic field the value of domestic exports continued to rise but the overall percentage growth rate has declined from its very high levels of 25.8 per cent and 24.8 per cent in 1968 and 1969 to the still high figure of 17 per cent in 1970. Hong Kong is particularly susceptible to changes in the world trade scene and to economic conditions in its main markets. The Colony noted there- fore the increasingly protectionist attitude in certain circles in the United States, which is Hong Kong's largest export market. This attitude was reflected in the now lapsed Trade Bill which, as it emerged from the House of Representatives, provided for certain mandatory restrictions on imports, particularly of textiles and foot- wear, into the USA.
Some uncertainty has also been caused by the opening of ne- gotiations on Britain's application to join the European Economic Community and the effect that this would have on Hong Kong's trade, if successful; and by uncertainty over the position of Hong Kong in the various schemes for generalised preferences for develop- ing countries being prepared by developed countries in pursuance