XN000022-1978-03-01 — Page 17

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WEDNESDAY, MARCH 1, 1978

+ THE RETURN OF AVERAGE NET FIXED ASSETS EMPLOYED IS NOW NIL AND NEXT YEAR THE UNDERTAKING WILL MICUR A LOSS OF NEARLY $250 MILLION.

+FURTHER DEFICITS WILL BE INCURRED IN THE THREE-YEAR FORECAST PERIOD AMOUNTING TO NEARLY $400 MILLION.+

MR. HADDON-CAVE POINTED CUT THAT THE DIRECTOR OF ATE SUPPLIES ESTIMATES THAT EVEN WITH THE COMPLETION OF THE HIGH ISLAND SCHEME, DEMAND ILL CHCE AGAIN HAVE CAUGHT UP „ITH SUPPLY BY THE EARLY 1980S AND THAT. IF REGULAR RESTRICTIONS ARE TO BE AVOIDED, THE SUPPLY SYSTEILL HAVE TO BE FURTHER EXTENDED.

HOWEVER, CONVENTIONAL METHODS CF DEVELOPING WATER RESOURCES WITHIN HOME KONG, EY EXTENDING CATCHMENT AREAS AND BUILDING NEW RESERVOIRS, ARE PRACTICALLY EXHAUSTED.

THE FINANCIAL SECRETARY SAID UNLESS DEMAND CAN BE KEPT DOWN BY VOLUNTARY CONSERVATION OR RESTRICTIONS AND THE RISK OF LONG-TERM RESTRICTIONS ONCE AGAIN ACCEPTED, IT WILL BE NECESSARY TO MAKE USE OF NON-CONVENTIONAL METHODS OR TO TRY TO ARRANGE FOR A LARGER SUPPLY FROM CHINA.

A LONG LEAD TIME AND

+NON-CONVENTIONAL METHODS ARE VERY EXPENSIVE, REQUIRE

HI THE MAIN, INVOLVE NEW TECHNOLOGY WHICH HAS YET TO BE TRIED IN HONG KONG OR, INDEED, TRIED ON A LARGE SCALE ANYWHERE.

+THESE METHODS WILL INVOLVE COSTLY AND TIME CONSUMING INVESTIGATIONS AND TRIALS. HAVING TO RESORT TO THEM WOULD

EAN THAT INEVITABLY THE COST OF WATER MUST RISE,+ R. HADDON- CAVE SAID.

TURNING TO POSTAL SERVICE, THE FINANCIAL SECRETARY DISCLOSED THAT CERTAIN POSTAL CHARGES WILL BE INCREASED FROM APRIL 1.

+THE MANAGEMENT OF THE POST OFFICE IS BASED ON THE IDENTIF ICATION OF VARIOUS COST CENTRES, SOME OF WHICH ARE PRESENTLY MAKING A LOSS, + HE SAID, ADDING THAT THERE IS NO REASON WHY SEVERAL OF THESE COST CENTRES SHOULD LE CROSS-JUESIDISED.

THE REVISION INVOLVES MODEST INCREASES IN THE CHARGES FOR INLAND PRINTED PAPERS, RE-DIRECTION OF MAIL AND FOR THE BUSINESS REPLY SERVICE.

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