XN000022-1974-02-04 — Page 2

Monday, February 4, 1974

OIL SUPPLIES STORAGE SITES

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The Government has made available sites at Sha Tin and on Tsing

Yi Island for the storage of oil supplies from China.

Announcing this today, the Deputy Colonial Secretary and Chairman

of the Oil Policy Committee, Mr. Michael Clinton, said that these facilities would enable China Resources Company to import significant quantities of oil to Hong Kong on a regular long term basis.

China Resources Company has indicated that it has secured from

China the allocation of some 300,000 tons of various oil products for Hong Kong during 1974. This represents about seven per cent of Hong Kong's total oil demand.

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Mr. Clinton said that these supplies would clearly be most welcome in the light of the expected 10 per cent shortfall in our Middle East supplies. However, he added that of these products the additional supply of fuel oil from China would be only four per cent of our requirements for fuel oil. This meant that it was still vital for the community to economise in the use of electricity which was the major consumer of fuel oil.

He said that the Government's decision on the storage sites was the outcome of discussions held with China Resources Company, who would purchase the land by private treaty grant.

Two sites are to be provided at Sha Tin and these comprise 2 acres of formed land, situated alongside the railway line near the junction of Tai Po Road and Fo Tan Road. Oil and other products from China would be transported

there by rail.

The site