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Wednesday, February 24, 1971

"This would be a single-purpose plant, that is, not linked with

the production of electricity. It means proceeding to plan the installation

immediately (incorporating the lessons we will have learnt from the stall

pilot plant being set up at present). The capital oust is estimated at

$190 million."

The Financial Secretary said there was a limit to the amount of

single-purpose desalting plant that Hong Kong could economically use in its

present system because of limitations of storage. This limit would be 60

million gallons a day, after High Island had been added to the system.

For the same reasons, there was a limit on the amount of water from

China the Colony could usefully take on a regular contractual basis. But

Hong Kong could "probably use more than we do now, and we shall be inviting

the Chinese authorities to explore the possibilities with us.

Sir John continued: "Looking further ahead, we shall have to begin

detailed discussions with the power companies about the possibility of dual-

purpose plants for water production in the early 1980s. We shall, with

High Island, have exhausted major conventional sources, although further

minor sohemes might still produce useful additions to supplies."

He explained that neither the proposal to proceed at once with High

Island or that for the planning and installation of a desalting plant giving

20 million gallons a day had yet been formally put to the Legislative Council

or its Finance Committee, though members were aware of them. He apologised

if he appeared to be "jumping the gun," but detailed proposals would be presented

as soon as possible.

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