whether the processes or products are significantly new compared with those existing in the local manufacturing industry; the level of technology to be introduced; and the employment opportunities created for skilled workers.
The Tai Po industrial estate is about 19 kilometres north of Kowloon and a similar distance from the Kwai Chung Container Terminal. The first two stages provide 45 hectares of industrial land. Further reclamation
may provide another 20 hectares.
The Yuen Long industrial estate, about 40 kilometres from Kowloon, will provide 72 hectares. The first five hectares of formed land are already available, and the rest will be progressively so. The estate is due for completion by 1982.
The populations of Tai Po and Yuen Long are about 30,000 and 40,000 respectively. Under Gov- ernment New Town Development plans these will increase to 220,000 and 100,000, providing sub- stantial labour resources.
The estates are directly linked to a network of highways and major roads. Tai Po town (about 1.5 kilometres from the Tai Po estate) is on the Kowloon-Canton Railway, now being modernised. Travelling time from the Yuen Long estate to the Kwai Chung Container Terminal is about 45 minutes.
Each estate is serviced with water, electricity, telephones, drains and sewers, and sites are avail- able in different sizes to suit lessees' requirements.
The premium for a period of 15 years, with a renewal option, is HK$700 (US$140) a square metre, and is paid when the lease is signed. In addition lessees pay a small fee for registration of the lease; a stamp duty which rises to a maximum of 2.75 per cent of the sale price; and thereafter a nominal rental plus an annual charge to cover the cost of general management and maintenance.
The lessee is required to build his factory and install his machinery and equipment to the value he proposed in his application; and to start production in the period he stated. The premises must be used only for the purpose proposed in the application, and lessees are not permitted to sublet. Development of the industrial sites is controlled by a maximum plot ratio of 2.5 (i.e. 2.5 sq. metres of factory space may be built for every 1 sq. metre of site area). Buildings have to be set back from the boundaries, and provision must be made within the sites for parking, loading and unloading.
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Tenders and Private Treaties
For industries of a relatively high technology which cannot be accommodated in industrial estates, the Government sells leases in certain areas by tender or by private treaty on special terms.
Applications to purchase leases are considered by the Government following an assessment by the Trade Industry and Customs Department. The crit- eria are whether the projects:
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result in the import of new processes, or a signi- ficant technological upgrading of existing processes; are at generally higher level of technology than is current in Hong Kong's manufacturing industry; provide employment opportunities, particularly for male workers, at a generally higher level of skill than currently obtained in Hong Kong's industry;
are land intensive, and require the use of industrial processes which, by their nature, cannot be per- formed in multi-storey industrial buildings; and are those which could not otherwise be established or developed in Hong Kong.
Some preference may also be given to those projects that will provide essential raw materials or com- ponents for existing Hong Kong industries.
A tender procedure is employed whenever possi- ble. A private treaty grant is negotiated for those projects which involve extensive investigations and detailed feasibility studies, or where stringent con- trols of effluents or aerial emissions are necessary.
The premium is normally the assessed value of the site restricted to low-density industrial use. Lease conditions generally stipulate a relatively high capital investment, and restrict the use of the site to the industry for which it is sold.
Buying from Private Developers
Industrial sites may also be bought privately from persons holding title to land under Crown leases. People wishing to buy privately are advised to consult a solicitor (attorney) to ensure that the holder's title is valid, and that the use to which the land will be put is not contrary to existing regulations, or to the terms of the relevant lease. The Trade Industry and Customs Department is not the author- ity for land sales, but its Department of Industry can give advice, information and assistance in locating sites, and in making the appropriate contacts within and outside Government. (See Section 9)
Industrial Towns and Zones
The Government has developed towns which are carefully planned as self-contained communities providing housing, employment, schools, shopping and community facilities.
The main industrial towns are:
Kwun Tong, situated about ten kilometres from the southern tip of Kowloon and five kilometres from the Hong Kong International Airport. It is served by a major trunk road, underground railway, and both passenger and vehicular ferries to Hong Kong Island.
There are over 3,200 factories in Kwun Tong engaged mainly in the textiles, electronics, electrical,
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