TNAG-0759-FCO40-963-Manufacture-and-storage-of-explosives-in-Hong-Kong-1978 — Page 105

CONFIDENTIAL

The Hon DJ C Jones JP

Secretary for the Environment

Environment Branch

Government Secretariat

HKK 08411

RECOV

INDE

2 8 MAR 1978

No RS

Ay Thompson 2013 822813

'B' IMP/CI(C)L

21 March 1978

See

SLURRY EXPLOSIVES PLANT ON STONECUTTERS ISLAND

You will recall from our talk on December 16, when I enquired about the project timetable, that I have been taking a close interest in the Hong Kong Government's plans to establish an explosives factory on Stonecutters Island. I now learn that matters are coming to a head and that detailed tender documents will be issued tomorrow for bids to be submitted by 20 April.

2.

My reason for writing now is that ICI have sent me a copy of Derek Cornthwaite's letter of 21 March to you covering the other point which we discussed i.e. the apparent contradiction in press reports about the design requirements of the new explosives factory. According to copies of letters on my files going back to January 1974, the original intention of the Hong Kong Government was to encourage explosives Manufacture in Hong Kong in order to minimise both the storage of explosives in the colony and the movement of explosives within the harbour area. ICI, as the main British contender, have, therefore always looked at the economic viability and design of its proposed plant in the belief that the Hong Kong Government required the chosen manufacturer to plan production to meet up local demand only. While I recognise that the Government will wish to permit exports to reduce storage levels on Stonecutters Island in times of low local usage, I can well understand ICI's concern if, at this late stage, the Hong Kong Government now seeks to encourage the production of explosives as an export earner. This would completely alter the basis of all the planning and work which has gone into the consideration of the Hong Kong Government's original request and ICI might have to undertake a major reexamination of the project.

3. I should be most grateful if you could let me know urgently how matters stand as I want to be quite sure that I have correctly interpreted your Branch's thinking.

b.c.c.

J A B Stewart Esq

Hong Kong & General Department

C Prison Esq

CRE4

D M March

Senior Trade Commissioner

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