XN000022-1974-05-07 — Page 8

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TUESDAY, MAY 7, 1974

GREAT SIGNIFICANCE OF PROPOSED OIL REFINERY

AND PETROCHEMICAL COMPLEX

THE ACTING DIRECTOR OF COMMERCE AND INDUSTRY, MR. JAMES MCGREGOR, TONIGHT EXPRESSED STRONG SUPPORT FOR THE PROPOSAL TO ESTABLISH AN OIL REFINERY AND PETROCHEMICAL COMPLEX IN HONG KONG.

HE SAID THAT THE COMMERCE AND INDUSTRY DEPARTMENT IS +VERY STRONGLY IN FAVOUR OF THIS EXCITING PROJECT+, UHICH IT REGARDED AS HAVING GREAT SIGNIFICANCE FOR HONG KONG'S FUTURE INDUSTRIAL AND ECONOMIC DEVELOPMENT.

MR. MCGREGOR, WHO WAS ADDRESSING THE LIONS CLUB OF HAPPY VALLEY, SAID THAT AT TODAY'S PRICES THE WHOLE COMPLEX IS LIKELY TO COST OVER $4,000 MILLION VISI COMPLETED, AND THE INVESTMENT THUS COMPARED QUITE FAVOURABLY WITH THE FIRST FOUR STAGES OF THE MASS TRANSIT SYSTEM.

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+THAT INTERNATIONALLY-KNOWN COMPANIES, AND THEIR BANKERS, ARE WILLING TO TAKE UP SUCH AN ENORMOUS COMITMENT TO HONG KONG SPEAKS WELL OF OUR PRESENT ECONOMIC STRENGTH AND OF OUR LONGER TERM VIABILITY,+ HE ADDED.

MR. MCGREGOR SAID THAT THE PROPOSED COMPLEX WOULD BE A MASSIVE PRODUCER OF THE OIL AND PETROCHEMICALS UHICH +VE NEED RIGHT NOU AND WHICH WE SHALL NEED INCREASINGLY IN FUTURE.+

THE REFINERY MIGHT REQUIRE 10 MILLION TONS OF CRUDE OIL A YEAR. THE PROCESSING OF THIS WOULD HAVE TO PROVIDE THREE MILLION TONS OF FUEL OIL FOR OUR POVER AND WATER PRODUCTION, AND ALL THE BUNKER FUEL, KEROSENE, DIESEL OILS AND PETROLS FOR OUR TRANSPORT THAT WE SHALL REQUIRE.

THERE WOULD BE SUBSTANTIAL SURPLUSES OF OILS FOR EXPORT, HE SAID. THIS WOULD HELP OUR BALANCE OF PAYMENTS AND PLACE US IN A STRONGER POSITION IN THE WORLD LEAGUE OF TRADING TERRITORIES. OTHERS WOULD DEPEND ON HONG KONG, AT LEAST TO 50:15 EXTENT, FOR SUPPLIES OF ESSENTIAL FUELS, VZ COULD GAIN IN STATURE AND IN

INTERNATIONAL INFLUENCE AS A RESULT.

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MR. MCGREGOR ADDED: +WHEN YOU TAKE INTO ACCOUNT THE WORRIES AND TRIBULATIONS OF THE LAST SIX TO EIGHT MONTHS ARISING FROM SHORTAGES, OR FEARED SHORTAGES, OF OILS AND PETROLS, IT MUST SUPELY BE CONCEDED THAT THERE IS A STRONG CASE FOR SEEKING TO IMPROVE THE SECURITY OF SUPPLY OF THE FUELS WITHOUT WHICH OUR ECONOMY WILL WITHER AND DIE.+

HE POINTED OUT THAT THE PROPOSED REFINERY WOULD ALSO BRING HUNDREDS OF GOOD JOB OPPORTUNITIES VITH IT, QUITE APART FROM THE BUILDING AND CONSTRUCTION WORK OVER A PERIOD OF MANY YEARS.

MANY OF THESE JOBS WOULD MEAN NEW TECHNICAL SKILLS, NEV TECHNIQUES, A WIDER RANGE OF INDUSTRIAL TRAINING AND A VIRTUALLY ALL-MALE WORKFORCE. SOME OF THE TRAINING WOULD BE PROVIDED IN OVERSEAS PLANTS.

MR. MCGREGOR