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Mr Kwong said the Centre was to centralise storage and to tie in with its commissioning, a new computer-based system for warehouse operations, stock management and stores acquisition was being developed.

The completion of these projects will produce total savings of $40 million per annum and significantly improve services to customers, he said.

End

Hong Kong/Philippines ASA negotiation concluded

After six years of discussion, Hong Kong and the Philippines finally concluded negotiation of a HK/Philippines Air Services Agreement and initialled the text of the agreement yesterday (Wednesday).

The initialled agreement will be submitted to the Sino-British Joint Liaison Group for endorsement before it can be formally signed by Hong Kong.

The two sides further agreed on an expansionary traffic rights arrangement providing for increased services between Hong Kong and the Philippines. The Hong Kong/Philippines route is one of the busiest and fast growing in Asia.

"This agreement provides a proper legal footing for the smooth continuation of air services between Hong Kong and Philippines through and beyond 1997.

"It will assist both the development of our air services and further enhance the opportunities for trade and tourism between Hong Kong and the Philippines," said the chief negotiator representing Hong Kong on the negotiation, Mr Michael Arnold

With the successful conclusion of the talks on the HK/Philippines ASA, Hong Kong has now completed negotiations on separating HK air services from those of the UK in preparation for the change of sovereignty in 1997.

So far, Hong Kong has already signed 13 Air Services Agreements and arrangements are now in hand to sign four more agreements which have received clearance by the Joint Liaison Group.

A number of other agreements including those with the US and Japan are currently being considered by the Sino-British Joint Liaison Group.

"We are confident that all the remaining agreements will be approved by the JLG and signed well before the change of sovereignty in 1997," said Mr Arnold.