WEDNESDAY, OCTOBER 24, 1984
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+THE CONTINGENCY PLANS SO DEVISED MAY BE UNCONVENTIONAL, BUT EMERGENCY SITUATIONS DO REQUIRE IMAGINATIVE SOLUTIONS,+ SAID MR CHEONG.
→SECONDLY, THE STRENGTH OF THE U.S. DOLLAR VIS-A-VIS EUROPEAN CURRENCIES AND THE FACT THAT THE HONG KONG DOLLAR IS NECESSARILY LINKED TO THE U.S. DOLLAR HAVE ERODED THE COMPETITIVE EDGE OF OUR PRODUCTS.
+OUR EXPORTS TO EUROPE HAVE ALREADY SUFFERED FROM ANY APPRECIABLE LACK OF GROWTH AND IF THE STRENGTH OF THE U.S. DOLLAR WERE TO CONTINUE WELL INTO 1985, OUR EXPORT PERFORMANCE TO EUROPE MAY WELL EXPERIENCE FURTHER SET-BACKS,+ HE SAID.
MR CHEONG ASKED THE FINANCIAL SECRETARY TO TAKE A CAUTIOUS ATTITUDE IN THE PREPARATION OF THE 1985-86 BUDGET.
+CAPITAL EXPENDITURE WOULD CERTAINLY NEED TO BE MORE CAREFULLY SCRUTINISED SO THAT EVEN MARGINALLY VIABLE PROJECTS COULD BE DEFERRED, HE SAID.
IN THIS CONNECTION, MR CHEONG SAID HE WAS NOT CONVINCED THAT THE PROPOSED CONSTRUCTION OF THE LIGHT RAIL SYSTEM LINKING TUEN MUN AND YUEN LONG WAS +A FINANCIALLY VIABLE PROJECT+.
+BASED ON A 1984 DOLLAR VALUE OF 1.7 BILLION. AND ON DAILY PASSENGER BOARDINGS OF 600 000 TO 750 000 WHEN THE FULL LRT SYSTEM IS COMPLETED, IT WILL TAKE 10 TO 15 YEARS BEFORE THE INVESTMENT COULD BE RECOUPED, HE SAID.
HE CONCEDED IT WAS TRUE THAT THE KCRC HAD BEEN INVITED TO CONSTRUCT AND OPERATE THE PROPOSED SYSTEM, AND THEORETICALLY THEREFORE, IF THE KCRC SHOULD DECIDE TO GO AHEAD, THE GOVERNMENT WOULD NOT SHOULDER SHORT TERM LIABILITIES.
+THOUGH KCRC IS SEPARATED FROM THE GOVERNMENT IN THAT IT IS A CORPORATION HAVING AN INDEPENDENT IDENTITY, YET TO THE EXTENT THAT THE KCRC IS UNDERWRITTEN BY THE GOVERNMENT, THE GOVERNMENT IS ULTIMATELY RESPONSIBLE FOR ITS SURVIVAL AND ITS DEBTS,+ HE SAID.
+ IT IS THEREFORE INCUMBENT ON THE GOVERNMENT TO SATISFY ITSELF BEYOND REASONABLE DOUBT THAT THE PROJECT IS VIABLE, BEFORE COMMITTING ITSELF IRREVOCABLY TO THE UNDERWRITING OF ANOTHER POSSIBLE WHITE ELEPHANT,+ MR CHEONG STRESSED.
ON THE DEVELOPMENT OF A REPRESENTATIONAL SYTEM OF GOVERNMENT, MR CHEONG BELIEVED THE FUNDAMENTAL PRINCIPLE TOWARDS ACHIEVING THE GOAL OF INVOLVING MORE PEOPLE IN THE BUSINESS OF GOVERNING HONG KONG MUST BE THROUGH THE APPLICATION OF A MORE OPEN SYSTEM OF GOVERNMENT.
/HE CONSIDERED