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"These purchases included telecommunications equipment, computer systems and software, pharmaceuticals, medical equipment and a helicopter," he said.
Other important sources of supply were the United Kingdom ($534 million; 12 per cent); Germany ($422 million; 9.5 per cent); China ($363 million; 8.1 per cent); Japan ($209 million; 4.7 per cent), and Hong Kong ($152 million; 3.4 per cent).
The highest value contract signed during the year was with AEG Electrocom of Germany for a postal mechanisation system for the new air mail centre at Chek Lap Kok at $193 million.
The second highest value contract was with Hewlett Packard at $145 million for computerisation of the Land Registry records.
Mr Shipman noted that his department monitored price trends for many of the items that it bought regularly.
"Last year the price trend indicator rose by 2.4 per cent, which compares favourably with the rise of 9.2 per cent in the Consumer Price Index (B)," he said.
Mr Shipman explained that decisions on contract awards were normally based on tendered offers.
"We negotiate with tenderers to obtain a lower price only when there are special reasons for doing so, for example, when additional amounts are to be purchased or when the prices quoted appear out of line with current contract prices or with market information," he said.
End
Opening of restored walled village in Fanling
The restored Kun Lung Wai in Fanling, an authentic walled city, will be open to the public following a rehabilitation ceremony this Saturday (April 13).
The $4.8 million restoration project was carried out in phases since 1988 under the supervision of the Antiquities and Monument Office of the Recreation and Culture Branch and the Architectural Services Department.