XN000022-1993-03-22 — Page 11

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MONDAY, MARCH 22, 1993

FOURTHLY, CLEARLY THERE WAS MUCH LEGAL WORK UNDERTAKEN BY THE DEPARTMENT WHICH WAS OF A SENSITIVE NATURE AND WAS INTIMATELY BOUND UP WITH THE FORMULATION AND EXECUTION OF POLICY,

"NO GOVERNMENT CAN ALLOW SUCH WORK TO GO OUTSIDE," HE SAID.

HE BELIEVED THAT THERE WERE POWERFUL PUBLIC INTEREST AND FINANCIAL REASONS WHY THE MAIN ACTIVITIES OF THE DEPARTMENT SHOULD REMAIN WITHIN THE DEPARTMENT.

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"THE GOVERNMENTS OF HONG KONG BEFORE AND AFTER 1997 WILL BE FACED WITH NUMEROUS CHALLENGES IN ENSURING THE SMOOTH TRANSITION OF SOVEREIGNTY: THE PRESENT GOVERNMENT IN SECURING THE PRESENT PROSPERITY AND PREPARING FOR THE TRANSFER, AND THE POST-1997 GOVERNMENT IN MAINTAINING THIS PROSPERITY AND ENSURING AN EFFICIENT ADMINISTRATION OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION.

THE LEGAL

"NUMEROUS LEGAL PROBLEMS WILL BE ENCOUNTERED. DEPARTMENT WILL BE THERE TO PLAY ITS PART IN THE GOOD GOVERNMENT AND ADMINISTRATION OF HONG KONG, MR MATHEWS SAID.

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LEGCO PANEL BRIEFED ON SCHEME OF CONTROL AGREEMENT RENEGOTIATIONS

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THE SECRETARY FOR ECONOMIC

AGREEMENT HAD BEEN REACHED WITH THE

SERVICES, HONGKONG

MRS

ANSON

ELECTRIC HOLDINGS

CHAN, SAID COMPANY

HAARHU

AND ITS PARENT COMPANY HONGKONG ELECTRIC EXTENSION OF THE COMPANY'S SCHEME OF CONTROL AGREEMENT FOR 15 YEARS ON REVISED TERMS AND CONDITIONS WHICH HAVE BEEN PRINCIPLE BY THE EXECUTIVE COUNCIL.

LTD THE

FURTHER IN

APPROVED

AT A MEETING WITH THE LEGCO PANEL ON ECONOMIC SERVICES AND PUBLIC UTILITIES THIS (MONDAY) MORNING, SHE INFORMED MEMBERS THAT IN ACCORDANCE WITH PROCEDURES WHICH HAD BEEN AGREED IN THE JOINT LIAISON GROUP, THE CHINESE GOVERNMENT WAS AT PRESENT BEING CONSULTED ON THE TERMS OF THE NEW AGREEMENT.

DURING THE BRIEFING MRS CHAN AND HER STAFF BRIEFED MEMBERS ON THE PERFORMANCE OF THE COMPANY DURING THE PERIOD COVERED BY THE CURRENT SCHEME OF CONTROL AGREEMENT (SCA) WHICH EXPIRES ON DECEMBER 31, 1993.

MRS CHAN SAID IN GENERAL TERMS, THE AGREEMENT HAD WORKED WELL AND THAT THE GOVERNMENT'S OBJECTIVE OF ENSURING THAT CONSUMERS RECEIVE A RELIABLE AND EFFICIENT SUPPLY OF ELECTRICITY COST HAD BEEN ACHIEVED.

AT

DURING THE PERIOD COVERED BY THE CURRENT AGREEMENT HONGKONG ELECTRIC HAD INVESTED OVER $23 BILLION IN ASSETS SPEND A FURTHER $7 BILLION OVER THE NEXT TWO YEARS.

REASONABLE

(1979-1993)

AND

WOULD

/TARIFF LEVELS

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