however, as improved transport links to China in a western corridor may be needed in any case, the required investment could well provide the capacity to serve additional development in the North-West New Territories (paragraph 33);
notwithstanding the points made in sub- paragraphs (c), (e) and (f) above, future capital commitments of some considerable magnitude are likely to arise in other directions and economic priorities may dictate the reprogramming of development. The choice of development options should be made in the framework of a preferred long term strategy, in respect of which studies should be completed within two years (paragraphs 34-44);
the political considerations associated with the project, whilst significant, should not outweigh the economic and planning considerations (paragraph 56).
From the developer's point-of-view, the benefits of the scheme are summarised at Annex H. He has acknowledged that the overriding motive for the project is a profitable return on an investment in the site claimed to be in the order of $1 billion. This, in turn, requires that the project proceed as expeditiously as possible but only if, in the long-term, Government's support can be guaranteed.
59
From an overall point of view, it is considered that the project offers a good opportunity to create a land bank in an area which, sooner or later, offers good prospects for development. The scale and timing of development to the full extent envisaged, however, must have full regard to future population growth, other economic priorities and the optimisation of resources on the "piggy-back" principle, that, every dollar invested in infrastructure should aim to have a multiple beneit. The preferred options will have to be derived within the frame- work of strategic planning studies now in progress for completion over the next two years. Accordingly, at this point of time no more than a limited scale of development would be appropriate.
60
It is, therefore recommended that, in order to achieve the respective objectives of Government and the developer, consideration be given to the following course of action :-
G.S. 166
CONFIDENTIAL
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