Tuesday, December 11, 1973

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industry or limitation on subsequent assignment.

This policy had proved economically sound both by the

revenue it has brought to the public purse, and by ensuring that

land was put to the most profitable use.

Rapidly increasing land prices had made multi-storey

development inevitable, however, and these buildings were suitable

for the many light industries that have prospered in Hong Kong.

But this development had in recent years inhibited the

establishment of industries that could not operate in high-rise

buildings, such as medium and heavy engineering, foundries,

ohemical processing, and heat and chemical treatment plants.

Mr. McGregor said that the revised policy approved by

the Executive Council defined a number of principles and specific

criteria which would be applied when applications for land to be

granted on a restricted user basis were considered.

The projects concerned would have to be new to Hong Kong

or represent a technological up-grading to a significant degree of

an existing industrial process.

They would also have to provide employment opportunities

at a generally higher level of skill than prevailed in existing

industries and some, like the Dow polystyrene project, would

provide essential raw materials for our export oriented manu-

facturing industry.

Mr. MoGregor pointed out that polystyrene was the basic

raw material of a large section of Hong Kong's toy industry, and

supports other main industries such as electronics.

He expressed his belief that Hong Kong would attract

further major industrial projects in the near future.

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