XN000022-1980-05-16 — Page 5

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FRIDAY, MAY 16, 1980

NEW WATER AGREEMENT WITH GUANGDONG

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THE DIRECTOR OF PUBLIC WORKS, MR DAVID MCDONALD, RETURNED TO HONG KONG TODAY AFTER SIGNING A NEW WATER AGREEMENT WITH THE GUANGDONG PROVINCIAL GOVERNMENT.

HE WAS ACCOMPANIED BY THE DIRECTOR OF WATER SUPPLIES,

MR WILLIAM TUCKER, AND OTHER OFFICIALS.

THE AGREEMENT WAS SIGNED BY MR MCDONALD ON BEHALF OF THE HONG KONG GOVERNMENT AND MR WEI LINJI, DIRECTOR OF THE DEPARTMENT OF WATER CONSERVATION AND HYDRO-ELECTRIC POWER ON BEHALF OF THE PEOPLE'S GOVERNMENT OF GUANGDONG PROVINCE.

AMONG THOSE PRESENT AT THE SIGNING CEREMONY WERE MR ZHENG DINGSHI, DEPUTY GOVERNOR OF THE PEOPLE'S GOVERNMENT OF GUANGDONG PROVINCE MR ZHANG BIN, DEPUTY DIRECTOR OF THE GUANGDONG FOREIGN AFFAIRS OFFICE, AND OTHER OFFICIALS.

AFTER THE SIGNING CEREMONY, REPRESENTATIVES FROM BOTH PARTIES ATTENDED A RECEPTION GIVEN BY MÁ ZHENG DINGSHI.

IN A STATEMENT ISSUED ON HIS RETURN, MR MCDONALD SAID HE WAS VERY PLEASED WITH THE NEW AGREEMENT.

HE SAID: +UNDER THE TERMS OF THE AGREEMENT THE FORECAST INCREASE IN DEMAND WILL BE MET IN FULL BY THE GUANGDONG PROVINCIAL GOVERNMENT.+

HONG KONG NOW GETS 168 MILLION CUBIC METRES OF WATER FROM CHINA AND UNDER THE TERMS OF THE PREVIOUS AGREEMENT SIGNED IN NOVEMBER 1978, THE TERRITORY IS TO RECEIVE AN ANNUAL SUPPLY OF 182 MILLION CUBIC METRES BY 1982.

+THE NEW AGREEMENT WILL ENSURE SUFFICIENT WATER SUPPLIES FOR HONG KONG WITH AN AVERAGE ANNUAL INCREASE IN SUPPLY OF ABOUT 35 MILLION CUBIC METRES FROM 1983, + MR MCDONALD SAID.

COMMENTING ON THE DURATION OF THE AGREEMENT, HE SAID THAT IT WAS AN ON-GOING ONE AND THERE WAS NO TERMINAL DATE WHICH WAS A BIG STEP FORWARD.

HE POINTED OUT THAT THE PROVISION MADE IN THE CURRENT AGREEMENT TO CATER FOR ANY REVISION OF REQUIREMENTS TO BE SETTLED BY MUTUAL CONSULTATION WOULD CONTINUE TO APPLY.

ON THE COST OF THE WATER TO BE SUPPLIED, MR MCDONALD SAID THAT NO CHANGE WAS PROPOSED TO THE CURRENT COST OF RMB 0.15 YUAN PER CUBIC METRE. HOWEVER, HE WARNED THAT IF OPERATING COSTS INCREASED OVER THE YEARS, A REVISION OF THE EXISTING CHARGES MIGHT PROVE NECESSARY LATER.

TO RECEIVE THE ADDITIONAL SUPPLIES. HONG KONG WILL HAVE TO EXPAND ITS RECEPTION AND DISTRIBUTION FACILITIES.

/+THESE WORKS