XN000022-1979-03-20 — Page 2

TUESDAY, MARCH 20, 1979

GOVERNOR'S TERM EXTENDED

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H.M. THE QUEEN HAS APPROVED THAT SIR MURRAY MACLEHOSE WILL REMAIN GOVERNOR OF HONG KONG UNTIL APRIL 1980.

ANOTHER $100 MILLION SHIPYARD PROJECT ON TSING YI ISLAND

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HONG KONG'S SHIPPING INDUSTRY HAS RECEIVED ANOTHER BOOST WITH THE LEASE OF A LARGE AREA OF LAND ON TSING YI ISLAND FOR THE CONSTRUCTION OF A $100 MILLION SHIPYARD FINANCED BY THE BANK OF CHINA.

THE SECRETARY FOR THE NEW TERRITORIES, MR. DAVID AKERS-JONES, AND THE MANAGING DIRECTOR OF THE YIU LIAN MACHINERY REPAIRING WORKS LTD., MR. CHAN CHUNG, SIGNED THE CONDITIONS OF GRANT TODAY (TUESDAY) FOR A LEASE OF 11.6 HECTARES OF LAND AT NAM WAN ON THE WESTERN COAST OF THE ISLAND.

MR. AKERS-JONES SAID THE LAND WOULD BE INTENSIVELY USED FOR SHIP BUILDING, SHIP REPAIRING AND ANCILLARY SERVICES AND WOULD INVOLVE THE INSTALLATION OF A FLOATING DOCK, CONSTRUCTION OF A SLIPWAY, A NUMBER OF ALONGSIDE REPAIR BERTHS, MACHINE SHOPS, AN ADMINISTRATIVE BUILDING AND WORKERS' QUARTERS WITH A TOTÁL CAPITAL INVESTMENT OF MORE THAN $100 MILLION.

PERMISSION WAS FIRST GIVEN TO THE COMPANY TO COMMENCE SITE FORMATION WORK IN APRIL 1977, PENDING THE FINALISATION OF DETAILS.

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THE FIRST STAGE OF THE PROJECT, INCLUDING THE CONSTRUCTION OF REPAIR BERTHS, WORKSHOPS AND THE ADMINISTRATIVE BUILDING IS WELL ADVANCED AND SHOULD BE COMPLETED WITHIN A YEAR. THE FLOATING DOCK HAS ALREADY BEEN INSTALLED.

YIU LIAN MACHINERY REPAIRING WORKS LTD. IS A HONG KONG REGISTERED COMPANY CLOSELY ASSOCIATED WITH CHINA MERCHANTS STEAM NAVIGATION COMPANY LTD.

THE TSING YI FACILITIES ARE EXPECTED TO CATER FOR MORE THAN 200 VESSELS A YEAR AT THE ALONGSIDE BERTHS AND SLIPWAY, WITH ABOUT 50 VESSELS A YEAR AT THE FLOATING DOCK, TOGETHER WITH SHIPBUILDING AS ORDERS ARE RECEIVED.

MORE THAN 2,500 PEOPLE WILL BE EMPLOYED AT THE SHIPYARD WHEN IT IS FULLY OPERATIONAL.

/+THE GOVERNMENT