XN000022-1976-03-08 — Page 2

MONDAY, MARCH 8, 1976

H.K. HOPES TO ASK FOR A FURTHER ADB LOAN

*****

THE FINANCIAL SECRETARY, MR. PHILIP HADDON-CAVE, SAID TODAY THAT HE HOPED TO BEGIN NEGOTIATIONS FOR ANOTHER BANK LOAN WHICH WOULD BE USED TO ASSIST IN IMPROVING THE SOCIAL CONDITION OF THOSE IN NEED IN HONG KONG.+

HE WAS SPEAKING AT A CEREMONY IN MANILA IN WHICH HE SIGNED THE NECESSARY DOCUMENTS FOR A US $20 MILLION LOAN FROM THE ASIAN DEVELOPMENT BANK TOWARDS THE COST OF THE SEWAGE TREATMENT WORKS AT SHA TIN.

MR. HADDON-CAVE ALSO EXPRESSED THE HOPE THAT BORROWERS SUCH AS HONG KONG WERE SEEN BY THE BANK AS BOTH SOUND CREDIT RISKS AND USEFUL ASSOCIATES IN THE BANK'S GROWING ROLE IN THE REGION.

FOLLOWING IS THE TEXT OF REMARKS MADE BY THE FINANCIAL SECRETARY AT THE CEREMONY

+IT GIVES ME GREAT PLEASURE TO SIGN THIS LOAN AGREEMENT ON BEHALF OF THE GOVERNMENT OF HONG KONG AND TO THANK YOU MR PRESIDENT FOR YOUR GOOD WISHES,

Å

+THIS IS THE SECOND TIME THAT THE GOVERNMENT OF HONG KONG HAS BORROWED FROM THE BANK. PERHAPS I MIGHT BE PERMITTED TO STRESS ONLY THE SECOND TIME AND, AT 9-1/2 PER CENT, THE INTEREST CHARGES ON THIS LOAN WILL MAKE A HELPFUL CONTRIBUTION TO THE BANK'S

INCOME. ON THE LAST OCCASION, IN 1972, WE BORROWED US$ 21.5 MILLION TOWARDS THE COST OF ESTABLISHING A SEA WATER DESALTING PLANT.

+THE PROCEEDS OF THIS NEW LOAN, FOR US$ 20 MILLION, WILL BE USED TO CONSTRUCT A SEWAGE TREATMENT WORKS IN SHA TIN, SHA TIN IS ONE OF THE THREE NEW TOWNS IN THE NEW TERRITORIES WHICH WILL HOUSE EVENTUALLY 1.5 MILLION PEOPLE IN BALANCED DEVELOPMENT OVER ABOUT 6,500 ACRES OF LAND. IT IS IN THESE NEW TOWNS THAT WE ARE PUTTING OUR MAIN PUBLIC HOUSING EFFORT THOUGH ESTATES ARE STILL BEING BUILT IN THE URBAN AREAS.

+HONG KONG'S POPULATION, WHICH IS 4.4 MILLION AT PRESENT, HAS GROWN BY 800,000 DURING THE LAST TEN YEARS AND OF THIS INCREASE NO LESS THAN 150,000 REPRESENTED NET MIGRATION. SO IT IS NOT SURPRISING THAT OUR MASSIVE HOUSING PROGRAMME WILL HAVE TO CONTINUE UNTIL WELL INTO THE 1980'S IN ORDER THAT ALL IN NEED OF PUBLIC HOUSING ARE SATISFACTORILY CATERED FOR.

+SHORTLY I HOPE TO BEGIN NEGOTIATIONS FOR ANOTHER BANK LOAN WHICH WILL ALSO BE USED TO ASSIST MY GOVERNMENT IN IMPROVING THE SOCIAL CONDITION OF THOSE IN NEED IN HONG KONG AND HOPE BORROWERS SUCH AS HONG KONG ARE SEEN BY THE BANK AS BOTH SOUND CREDIT RISKS - AS WE OBVIOUSLY ARE - AND USEFUL ASSOCIATES IN THE BANK'S GROWING ROLE IN THE REGION.+

12