XN000022-1981-01-22 — Page 14

a firmer course.

For my part I an optimistic.

One thing we can certainly be sure of is the competence of our

and their industrial advisers.

own negotiators You can rest assured that anything that can be done by

nogotiation they will do.

The

I agree with your remarks on the importance of extending our

transport infrastructure. It is a prerequisite of both our economic

expansion and the better distribution of our population. I can assure you

that a great deal more is being done by your Government than scratch its

head about the problems of King's road in rush hour. This year completed projects will include Phase I of the Tsuen Jan By-pass, Aberdeen Tunnel and the Canal Road flyover, the East Kowloon Corridor leading to the airport tunnel, the flyover at the Pokfulam and Hill Road junction and even, you will be surprised to hear the flyover at the Stubbs Road roundabout.

completion at the end of the next year of the Tsuen Wan extension of the MTR and at the end of next year or the beginning of 1983 completion of the

double-tracking and electrification of the railway to Lo Wu will enormously

New Territories. relieve traffic problems in the North-east and south-west Otherwise, 1984 and 1985 seem to be the years in which general relief can be expected

through completion of the MTR Island Line, the Island Eastern Corridor road,

and in the New Territories the completion of large portions of the New

Territories Circular road. These are gigantic projects. Nevertheless

slippage of this programme could be seriously damaging.

You referred to commercial rents. Their rapid rise is a disagreeable aspect of an otherwise encouraging fact, namely the very

favourable view that people take of Hong Kong as a place of business in its own right, as a trade base for the Western Pacific growth area, and particularly as a place in the closest contact with the developing economy of China. I am fully aware of the disruptive effect of these very sharp increases in rent, particularly in prime areas, and the harsh effects on

/individuals,