TNAG-0735-FCO40-939-Policy-objective-for-the-developing-of-Hong-Kong-in-the-1980-1978 — Page 173

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SINO/BRITISH RELATIONS

8. I will start with a word about Sino/British

relations.

They continue to be very good, and they are

good specifically over Hong Kong, and we know well the

friendly and helpful attitude of Chinese officials

stationed in Hong Kong.

Water from Kwangtung

9.

This has been manifested in many ways

moves to improve communications and so on

-

investment,

but the one

of most immediate interest to Members will be the recent

agreement of the Kwangtung Water Authority to increase

the supply of water from the East River by 33% by 1982.

This will involve them in substantial expenditure and

considering that the charge for this water has been

unchanged at HK$1.26 per thousand gallons since 1964 it

is entirely reasonable that they should ha ve proposed to

increase the charge to HK$1.88 from 1 October 1978 and

that your Government should ha ve agreed. I should add

that at the new charge this water will still be very

much cheaper than any new source within Hong Kong and

water charges to the public will not be affected.

An

agreement covering these points will shortly be signed,

probably in Canton.

10. This covers increases up to February 1983. But we

have also explained to the Kwangtung Water Authority what our long-term requirements will be. These are large and