XN000022-1987-11-25 — Page 4

3

WEDNESDAY, NOVEMBER 25, 1987

ALSO, LAND FORMATION WORKS ON THE TWO ESTATES CAME TO AN END IN THE SUMMER OF THIS YEAR, AND FURTHER EXPENDITURE IS THUS REDUCED TO THE MINIMUM LEVELS REQUIRED FOR JUST ADMINISTRATION AND ESTATE MANAGEMENT," MR CHEONG SAID.

TURNING *]*{ ! PROSPECTS

FOR 1987-88, MR CHEONG SAID THE SITUATION WAS VERY ENCOURAGING, AS IN THE FIRST SEVEN MONTHS OF THIS YRAR,

THE CORPORATION HAD ALREADY BROKEN THE RECORD FOR A FULL YEAR, SET IN 1985-86, BY DISPOSING OF ABOUT 11.5 HECTARES OF LAND.

FURTHERMORE, REVENUE IN THE FIRST SIX MONTHS HAD AMOUNTED ΤΟ ABOUT $10 MILLION, WHICH ALMOST DOUBLED THE CORPORATE TARGET.

MR CHEONG SAID THAT. IN THE FULL YEAR, THE CORPORATION EXPECTED TO HAVE DISPOSED OF ABOUT 20 HECTARES OF LAND. LONGER TERM, ASSUMING THAT ADVERSE EFFECTS OF THE RECENT WORLDWIDE STOCK MARKET CRASH WOULD NOT PRECIPITATE A DEEP RECESSION OVER THE NEXT FEW YEARS, IT WAS CONFIDENT THAT IT WOULD BE ABLE TO MEET ITS OBLIGATION ΤΟ THE DEVELOPMENT LOAN FUND IN FULL.

TURNING TO THE FUTURE, MR CHRONG WARNED THAT THERE WAS NO ROOM FOR COMPLACENCY, AS LAND SUPPLY AT ΤΑΙ PO WOULD BE VIRTUALLY EXHAUSTED BY THE END OF 1987-88, LEAVING SOME 50 HECTARES OF LAND AVAILABLE, ALL AT YUEN LONG.

"AT THE PRESENT RATE OF LAND DISPOSAL, WHATEVER SUPPLY THAT 18 AVAILABLE AT YUEN LONG COULD WELL BE EXHAUSTED WITHIN FIVE YEARS' TIME. ALSO IT IS A FACT THAT ANY INFRASTRUCTURAL PLANNING AND DEVELOPMENT REQUIRES A LONG LEAD TIME.'

"

FOR THESE REASONS, THE CORPORATION HAD ASKED THE GOVERNMENT TO GRANT A SITE TO DEVELOP HONG KONG'S THIRD INDUSTRIAL ESTATE, MR CHEONG SAID, ADDING THAT HE WAS PLEASED TO REPORT THAT THIS PROJECT HAD BEEN ENDORSED IN PRINCIPLE BY THE INDUSTRY DEVELOPMENT BOARD

AND, HOPEFULLY, THE FIRST PHASE OP A NEW ESTATE WOULD BE READY FOR OCCUPATION IN 1992-93.

MR CHEONG SAID THAT THE OVERSEAS AND LOCAL INVESTMENT PROJECTS ATTRACTED TO THE ESTATES REPRESENTED A CLEAR, STRONG VOTE OF CONFIDENCE IN THE ABILITY OF THE LOCAL WORKFORCE TO ABSORB TECHNOLOGIES AND SKILLS.

ADDITIONALLY, THE ESTATES HAD SUCCEEDED IN ATTRACTING A OF COMPANIES WHICH PRODUCED THE SORT OF PRECISION COMPONENTS, AND SMALL MECHANISMS THAT HONG KONG'S MAIN-LINE MANUFACTURERS FOR THE ASSEMBLY OF HIGH QUALITY PRODUCTS.

NEW

NUMBER

PARTS

NEEDED

"THESE INVESTORS REPRESENT A GROWING FORCE IN OUR SUPPORTING AND LINKAGE INDUSTRIES AND IT IS PERHAPS SIGNIFICANT THAT, OUT OF 541 FOREIGN COMPANIES SURVEYED FOR THEIR ACTIVITIES IN 1986, NO FEWER THAN 42 PER CENT EXPRESSED SATISFACTION OVER THE IMPROVING QUALITY THESE VITAL INDUSTRIES,' MR CHEONG SAID,

·

OF

IN

FINALLY HE SAID THE ESTATES HAD ALREADY PROVED THEIR WORTH PROMOTING THE QUALITY OF HONG KONG'S INDUSTRIAL BASE, AND IN THE YEARS AHEAD THEY WOULD BE OF IMMENSE

TO THE TERRITORY'S INDUSTRIAL DEVELOPMENT.

IMPORTANCE

14