XN000022-1973-03-17 — Page 2

Saturday, March 17, 1973

EMBARGO NOTE TO EDITORS:

The following item is embargoed until 6 p.m. today. On no account should radio and

television stations broadcast it before that

time.

GRANT OF $20 MILLION TO NEW URBAN COUNCIL

Government Agrees To Complete Outstanding Urbco Projects

**

The newly constituted Urban Council is to receive from the Government

a once-for-all grant of $20 million, additional to the annual rate income

which will finance its anticipated recurrent and capital expenditure.

Explaining the purpose behind the grant, which was promised in the

Government's White Paper on the Urban Council, a Government spokesman said

today that the rate income, which included an element of $10 million a year

for capital works, had been calculated on the basis of actual requirements.

This income would amount to $240 million in 1973-74.

"The additional grant of $20 million is intended to give the Council

substantial reserves at the outset, thereby improving upon the healthy financial

position which the rate yield has already ensured," he said.

He pointed out that the Government had also agreed to complete, at

no expense to the Urban Council, all Urban Council projects which were already

under construction, or upon which work would start in the next few months.

Including "last minute" additions, such as improvements to Victoria Park, a

new playground at Pok Fu Lam Road, and a swimming pool at Tai Wan, Hung Hom,

this would involve Government expenditure of some $40 million.

/Furthermore,