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After a series of discussions, both sides reached an initial agreement on the unit water prices for 1997, 1998 and 1999 and will seek the approval of their respective government for implementing the agreement.
The negotiation on water price was understood to be a difficult one.
"It was difficult to come to a figure which would satisfy both sides since the inflation figures differed widely between Hong Kong and Guangdong in recent years, the Director of Water Supplies, Mr M S Hu, said.
"There was also the complication of the exchange rate variation of Renminbi in 1994. However through the mutual understanding and the long established smooth co- operation and relationship between both sides, we had been able to come to an agreement."
The price index for Guangdong increased by 17.7 per cent last year according to Guangdong Provincial Statistics Bureau.
Mr Hu also brought up the issue on measures to be taken to reduce overflows from Hong Kong reservoirs in the light of the current high storage position.
On water quality issue Mr Guan made special reference to the long term and short term measures being taken by the Guangdong Provincial People's Government for implementation through the Bureau, Environmental Protection Department and local authorities, to protect water resources in the East River and en-route the Dong- Shen Water Supply Scheme from pollution with a view to enhancing the quality of water supply to Hong Kong.
On both issues, the two sides agreed to continue to closely co-operate to resolve the problems.
Mr Kwong expressed appreciation to Mr Guan for the continued efforts made by the Guangdong Bureau in meeting the water needs of Hong Kong.
End