XN000022-1984-11-11 — Page 2

SUNDAY, NOVEMBER 11, 1984

FIRMS STRESS NEED FOR CLOSE CLIENT CONTACTS ******

COMMERCIAL FIRMS IN HONG KONG ARE MORE CONCERNED ABOUT THE NEED FOR CLOSE CONTACTS WITH CLIENTS AND OTHER BUSINESS LINKS THAN ABOUT THE HIGH COST OF RENTS.

THIS IS INDICATED FROM A SURVEY CARRIED OUT IN JULY AND AUGUST LAST YEAR AMONG 350 LARGE, MEDIUM AND SMALL FIRMS BY THE STRATEGIC PLANNING UNIT OF THE LANDS AND WORKS BRANCH.

THE FINDINGS HAVE BEEN PRESENTED TO THE SPECIAL COMMITTEE ON LAND SUPPLY, WHICH HAS NOTED THEM WITH INTEREST.

IN THEIR RESPONSE TO THE SURVEY QUESTIONNAIRE AND FOLLOW-UP PERSONAL INTERVIEWS, THE FIRMS, GENERALLY, STRESSED THE CONSTANT NEED FOR CLOSE COMMUNICATIONS WITH CLIENTS AND BUSINESS LINKS THROUGH FACE-TO-FACE MEETINGS AND URGENT-BY-HAND+ DELIVERED CORRESPONDENCE.

THIS EMPHASIS ON +ACCESSIBILITY+-- THE TERM USED TO DESCRIBE THE NEED FOR SUCH BUSINESS CONTACTS, OR FUNCTIONAL LINKAGES WAS PARTICULARLY EVIDENT AMONG THE 56 BIG FIRMS EMPLOYING MORE THAN 200 PERSONS, COVERED IN THE SURVEY.

AS A RESULT, THE CENTRAL BUSINESS DISTRICT+, COMPRISING THE CENTRAL RATING AND VALUATION DISTRICT, AND THE INNER CITY+, COMPRISING THE ADJOINING SHEUNG WAN, WAN CHAI-TA HANG AND TSIM SHA TSUI, WILL CONTINUE TO BE IN DEMAND AS OFFICE LOCATIONS, A REPORT ON THE SURVEY STATES.

ABOUT 90 PER CENT OF ALL COMMERCIAL SPACE IS KNOWN TO BE LOCATED IN THE CENTRAL AND INNER CITY AREAS, AND THIS SPATIAL CONCENTRATION OF OFFICE DEVELOPMENT HAS, INEVITABLY, AS IS THE CASE IN MANY LARGE CITIES ELSEWHERE, BROUGHT ABOUT PROBLEMS OF TRAFFIC CONGESTION, OVER-CROWDING, ESCALATION OF PROPERTY PRICES AND RENTS, AND LENGTHENING OF TRAVEL TIME.

OFFICIAL CONCERN ABOUT THE TOWN PLANNING AND TRANSPORT CONSEQUENCES OF THESE PROBLEMS LED TO THE SURVEY BEING CONDUCTED WITH THE FOLLOWING TWO MAIN OBJECTIVES:

FIRSTLY

SECONDLY

TO IDENTIFY THE TYPES OF BUSINESSES WHICH COULD BE ENCOURAGED TO MOVE AWAY FROM THE CENTRAL AND INNER CITY AREAS TO OTHER DISTRICTS, AND

TO OBTAIN DATA ABOUT COMMERCIAL FIRMS, IN PARALLEL WITH A STUDY HELD IN JANUARY LAST YEAR CONCERNING INDUSTRIAL COMPANIES, FOR A REAPPRAISAL OF THE MECHANICS FOR ACHIEVING +BALANCED+ NEW TOWN DEVELOPMENT.

/THE REPORT