TNAG-0740-FCO40-944-Quarterly-progress-reports-from-Hong-Kong-1978 — Page 85

bject

Decision on Second

Desaltar and other potential water

resou nes

(CR 10 4576/76)

(CR 13/3220/76) (CR 1/4691/76)

(continued)

CONFIDENTIAL #2

Purpose

Part I

Progress Made & Present Position Next quarter Targets

from China to be supplied to Hong Kong both in the short and long term. As a result of this discussion, a new water supplies agreement has been agreed for

a staged increase of the annual amount of water to be supplied from the existing level of 136 million cubic metres to 182 million cubic metres in 1982/83 and there- after. This new agreement is expected to be formally ratified in the near future. It has also been agreed that the cost of water from China will be increased from 10 RMB per cubic metre to 15 RMB per cubic metre with effect from 1st October 1978. regards the long-term supply, the Kwangtung Authorities have agreed to consider a request from the Hong Kong Government to increase the annual amount supplied from 182 million cubic metres to 600 million cubic metres by 1995

in a number of stages. A reply from the Kwangtung Authorities is not expected until September 1979 in this respect.

As

CONFIDENTIAL # +