XN000022-1982-11-15 — Page 2

MONDAY, NOVEMBER 15, 1982

KWAI CHUNG EXPANSION COMPLETE IN 1986

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WHEN THE CURRENT PHASE OF EXPANSION IS COMPLETED IN 1986, THE KWAI CHUNG CONTAINER PORT, THE THIRD LARGEST IN THE WORLD, WILL HAVE A THROUGHPUT CAPACITY OF 2.2 MILLION TEUS (TWENTY-FOOT EQUIVALENT UNITS), COMPARED WITH 1.56 MILLION TEUS LAST YEAR, THE CHIEF SECRETARY, SIR PHILIP HADDON-CAVE, SAID AT THE OPENING OF EXPOSHIP FAR EAST 82 TODAY (MONDAY).

THE EXPANSION PHASE WILL INVOLVE THE RECLAMATION OF THE CREEK TO THE EAST OF THE CONTAINER PORT SO AS TO PROVIDE ABOUT 14 HECTARES OF ADDITIONAL LAND AS BACK-UP AREA FOR THE PRESENT CONTAINER TERMINALS, SIR PHILIP SAID.

+EFFICIENT MANAGEMENT OF THE PORT IS ESSENTIAL TO OUR ABILITY TO TRADE, WHETHER IN OUR OWN PRODUCTS OR IN RE-EXPORTS, HE SAID.

THE OCEAN-GOING TONNAGE ON THE HONG KONG REGISTER INCREASED FROM 0.42 MILLION GROSS REGISTERED TONS IN 1975 TO 2.58 MILLION IN 1981 AND TO 3.49 MILLION BY THE END OF LAST SEPTEMBER, SIR PHILIP POINTED OUT.

+ IT IS THE GOVERNMENT'S INTENTION TO MAINTAIN THE HIGH STANDARDS OF SHIP CONSTRUCTION, SAFETY, MANNING AND CREW TRAINING APPLICABLE BY LAW TO BRITISH SHIPS, BY EFFECTIVE ENFORCEMENT AND CONTINUAL MONITORING OF CHANGES IN INTERNATIONAL REGULATIONS,+ HE STRESSED.

APART FROM BEING A PORT OF BRITISH REGISTRY, HONG KONG IS A MAJOR OWNING CENTRE, WITH AN ESTIMATE OF 33 MILLION GROSS REGISTERED TONS OF SHIPPING BEING CONTROLLED BY HONG KONG SHIPOWNERS, HE SAID.

WITH REFERENCE TO DIFFICULTIES OF HONG KONG SHIPOWNERS IN THE PREVAILING ECONOMIC CLIMATE, SIR PHILIP EXPRESSED CONFIDENCE THAT THE OWNERS WOULD +SAFELY NAVIGATE THEIR WAY THROUGH TO CALMER WATERS.+

ON HONG KONG'S SLUGGISH PERFORMANCE IN DOMESTIC EXPORTS AND RE-EXPORTS IN THE FACE OF GLOBAL RECESSION, SIR PHILIP SAID, +THERE IS NO WAY IN WHICH AN EXTERNALLY-ORIENTED ECONOMY, SUCH AS HONG KONG'S, CAN BE INSULATED AGAINST FLUCTUATIONS IN THE GROWTH RATE OF WORLD TRADE AND, INDEED, IT WOULD BE DAMAGING TO THE ADJUSTMENT MECHANISM TO ATTEMPT TO DO SO.+

+THE FACT IS THAT UNFETTERED OPERATION OF THE ADJUSTMENT MECHANISM ENSURES OUR PROSPERITY IN THE LONGER TERM, NOT THAT THIS FUNDAMENTAL TRUTH NECESSARILY PRECLUDES A DEGREE OF POSITIVE INTERVENTIONISM BY THE GOVERNMENT IN CERTAIN CIRCUMSTANCES,+ HE

SAID,

+FOR EXAMPLE, THE SUPPLY RESPONSE IN THE PROPERTY MARKET IN HONG KONG IS INEVITABLY LUMPY, AND THIS CAN CAUSE RATHER SPECIAL DIFFICULTIES IF A LARGE SUPPLY OF PROPERTY COMES ON STREAM AT A TIME OF WEAK DEMAND.

+CERTAINLY, IN SUCH A SITUATION, THE BANKING SYSTEM HAS AN OBLIGATION TO EXPLORE THE POSSIBILITY OF RESCHEDULING THE DEBT LIABILITIES OF SOUND PROPERTY COMPANIES, FOR THE BANKING SYSTEM ACCEPTED THE EXPOSURE IN THE FIRST PLACE, SIR PHILIP SAID.

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