XN000022-1983-05-09 — Page 5

MONDAY, MAY 9, 1983

STRATEGIC FUEL RESERVES REDUCED

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THE TWO POWER COMPANIES AND THEIR SUPPLIERS WILL BE REQUIRED TO MAINTAIN UNTIL 1987 AN OVERALL FUEL RESERVE, OF COAL AND OIL, EQUIVALENT TO 40 DAYS ELECTRICITY CONSUMPTION AT CURRENT LOADS.

THE DECISION BY THE EXECUTIVE COUNCIL FOLLOWS A REVIEW OF THE NEED FOR STRATEGIC RESERVES IN VIEW OF THE WORLD-WIDE SURPLUSES OF OIL AND THE POWER COMPANIES' MOVE FROM OIL TO COAL-FIRED GENERATING PLANTS.

THE COMPANIES HAD BEEN MAINTAINING RESERVES OF FUEL OIL EQUIVALENT TO 60 DAYS' ELECTRICITY SUPPLY SINCE 1980 TO GUARD AGAINST A DISRUPTION IN THE SUPPLY OF OIL.

A GOVERNMENT SPOKESMAN SAID IT WAS NOW POSSIBLE TO REDUCE THE LEVEL OF RESERVES BECAUSE OF THE WORLD-WIDE SURPLUSES OF OIL, COUPLED WITH THE DECREASING DEPENDENCE OF THE COMPANIES ON FUEL OIL AS A SOURCE OF ENERGY.

+IN ADDITION, THE POWER COMPANIES HAVE SECURED SUPPLIES OF COAL FROM A VARIETY OF RELIABLE SOURCES, HE EXPLAINED. +THEREFORE, THE CHANCES OF A SERIOUS INTERRUPTION IN THE SUPPLY OF COAL OR, INDEED, OF FUEL OIL ARE MUCH SLIMMER TODAY.+

THE SPOKESMAN POINTED OUT THAT MAINTAINING FUEL RESERVES AT A HIGHER LEVEL THAN WAS NECESSARY WAS UNWARRANTED ON ECONOMIC GROUNDS.

+WHILE REPRESENTING ONLY A SMALL FRACTION OF THE COMPANIES' OPERATING EXPENSES, THE LOWER COST OF MAINTAINING SMALLER RESERVES WILL NEVERTHELESS BENEFIT CONSUMERS IN THE LONG TERM, + HE ADDED.

HIGH POTENTIAL FOR MARINE FISH CULTURE

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MARINE FISH FARMERS WILL BE ABLE TO SEEK EX-GRATIA ALLOWANCES TO RELOCATE THEIR EQUIPMENT OR WIND UP THEIR BUSINESS, A SENIOR OFFICIAL OF THE AGRICULTURE AND FISHERIES DEPARTMENT SAID THIS (MONDAY) EVENING.

MARICULTURISTS ARE BEING ALLOCATED SITES IN THE 26 DESIGNATED ZONES AND ANY FISH CULTURE OUTSIDE THESE ZONES WILL NOT BE ALLOWED, THE SENIOR FISHERIES DEVELOPMENT OFFICER, MR PHILIP CHEUNG, SAID.

UNDER THE MARINE FISH CULTURE ORDINANCE, WHICH CAME INTO FULL OPERATION IN MID-1982, 1 900 APPLICATIONS HAVE BEEN RECEIVED FOR LICENCES TO CULTURE MARINE FISH. OF THESE, 1 600 ARE FROM PRACTISING CULTURISTS.

MR CHEUNG SAID AT A MEETING OF THE ROTARY CLUB OF NEW TERRITORIES THAT THE ORDINANCE PROVIDES FOR THE ORDERLY DEVELOPMENT OF THE MARICULTURE INDUSTRY, WHICH LAST YEAR PRODUCED 1 155 TONNES OF FISH VALUED AT $67 MILLION.

/+IT ALSO