TNAG-0759-FCO40-963-Manufacture-and-storage-of-explosives-in-Hong-Kong-1978 — Page 128

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Mr G Barnes

Deputy Secretary for Environment

Im 323 Colonial Secretariat Bldg.

Fast wing of Central Government Offices llong Kong

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JAN 078

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Date

3 Jan 78

Dear Mr Barnes

EXPLOSIVES, STONECUTTERS

As a result of the recent press reportage of the proposed cartridged slurry explosive manufacture on Stonecutters Island, I have been asked by Nobel's Explosive Co. to write to you to seek some clarification of the Government' precise vishes and objectives in going ahead with this project.

It was our belief originally that the principle Government objective in encouraging explosives manufacture in Hong Kong was to minimise both the storage of explosives within the Colony and the movement of explosives within the harbour area, NEC were entirely in agreement with such an aim and all our thinking and planning for a plant on the Stonecutters Island site has been undertaken with this purpose in mind. Indeed, on past occasions we liave been formally asked by Government and agreed to restrict our assessment to producing slurry explosives for the local market only.

We now find ourselves faced with somewhat conflicting reports in the press as to the size of the factory being contemplated in Hong Kong. The Hong Kong Standard quotes an annual production of 3,200 tonnea (equal to last year's total consumption in Hong Kong) but the South China Morning Post puts the annual esparity at 8,400 ml. Both these figures are in excess of our own estimate of the domestic requirement for cartridged slurry explosives of around 2,300 mt by 1981; we foresee that at least part of the annual demand will continue to be met by either AN/FO mixtures or a Slurry Truck operation such as we currently operate at High Island."

It might be inferred from these annual capacities, particularly the latter, that a significant trade in the export of cartridged slurry explosives from the Colony is being contemplated, If this is the case the implications are that there will be little if any reduction in the amount of explosive storage and traffic in Hong Kong. Indeed, quantities might rise significantly particularly at a production level of 8,400 mt/annum. We would estimate that to support a manufacturing/selling operation on this scale at least one month's stock would be in store at any one time ie, some 700 mt and this could foak at a much higher level from time to time because of the difficulties of arranging shipping space to export markets. Apart from any other considerations, we do not believe that sufficient magazine storage capacity could be made availble for such an operation.

(Address all mail to our P. O. Box 107 to avoid delay)

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