Appendix D-Contd.
1984-85, 21% in 1985-86 and 5.8% in 1986-87. The most noticeable increases are at the China-link control points where the growth has been 43% in 1984–85, 38% in 1985-86 and 7.6% in 1986-87. The new Lo Wu terminal with expanded facilities for passenger clearance was opened in January 1987. The new China ferry terminal at Tsim Sha Tsui is expected to be completed in January 1988. Work on a third road crossing to China at Lok Ma Chau has also been undertaken and is expected to be completed by the end of 1988. Work on the Stage V expansion programme of the Airport is in progress and is expected to be completed by the end of 1987.
34 The facilities at the other control points have also been improved. For example, the new Macau ferry terminal commenced operation in October 1985 and the new Man Kam To terminal in January 1986. The computer system to assist in passenger clearance work at control points will be introduced in stages, starting in May 1987 at the Macau ferry terminal.
35 The identity card replacement scheme which commenced in March 1983 was completed in December 1986 when all old identity cards were replaced. The total number of new identity cards issued was 5 405 800. The second identity card re-issue exercise which introduces the permanent identity card with a right of abode endorsement will commence in July 1987. This is necessary for the purpose of issuing the British National (Overseas) passports and Hong Kong Certificates of Identity from July 1987.
(B)(3) Internal Security
36 Within the area of security services, historically the expenditure attributable to the Royal Hong Kong Regiment, the Royal Hong Kong Auxiliary Air Force, Hong Kong's contribution to the cost of the garrison, and the cost of maintaining border protection against illegal immigrants has been allocated to internal security. As can be seen from Table 1, the Government's contribution towards the cost of the garrison has been fluctuating within a fairly narrow band over the last five years. This is mainly due to the biennial change-over of the garrison's infantry battalions, fluctuation in the exchange rate between the Hong Kong dollar and sterling in which a significant proportion of the expenditure on the garrison is payable, and rising costs generally.
37 A higher level of expenditure ($1,690 million) is forecast for 1987-88, due to planned changes for two battalions (over two calendar years but in the one financial year) which will result in higher travel and movement costs and to exchange rate movements. It is also due to higher maintenance costs and an increase in capital works expenditure. Higher maintenance costs are unavoidable as the buildings in the military estate get older and start to deteriorate and as contract rates increase. The higher level of expenditure on capital works is due largely to the overhang effect of projects earlier approved but still under construction. As these projects are completed, so the effects of the reduced capital works programme should become apparent and result in lower expenditure on capital works in the years ahead.
38 A long range maritime search and rescue aircraft to replace an aircraft currently in service with the Royal Hong Kong Auxiliary Air Force will be delivered in 1987 at an estimated cost of $35 million.
(C) Economic Services
39 Economic Services comprise food supply, aviation, shipping, trade, industry, postal services and telecom- munications. Expenditure in 1987-88 is forecast to be $1,926 million compared with $1,770 million in 1986-87—an increase of 8.8%. The share of resources allocated to this programme group has remained relatively constant in recent years at around 3.5% of total Government expenditure (Table 1).
40 In September 1986, the first air service agreement between Hong Kong and another administration (Holland) was signed. In 1986 passenger and cargo traffic through Hong Kong International Airport continued to increase, by 7.8% and 24.7% respectively over the previous year. Traffic is expected to continue to increase in 1987. The Stage V extension to the terminal building is expected to be completed in mid-1988.
41
During 1986, 14 110 ocean-going vessels entered and 14 216 cleared the port. Cargo loaded onto and discharged from these vessels amounted to 16 993 950 and 36 664 592 deadweight tonnes respectively, representing an overall increase of 17.2% over 1985. The new Western District Public Cargo Working Area and the new China Ferry Terminal are expected to become operational in August 1987 and February 1988 respectively.
42 In 1986-87 support services available to local industry were widened and increased through developments of the Hong Kong Productivity Council, the Hong Kong Design Innovation Company Limited, the Hong Kong Laboratory Accreditation Service (HOKLAS) and the standards and calibration activities of the Industry Department. In 1987-88, these support services will continue to be developed and expanded in line with local industries' needs. Efforts will continue to encourage industrial investment from overseas through the Govern- ment's network of Industrial Promotion Offices and the One Stop Unit in Hong Kong.
43 In 1986–87, Hong Kong achieved separate contracting party status in the General Agreement on Tariffs and Trade. Major new agreements on textiles were secured with, inter alia, the USA and the EEC. In 1987-88, steps will be taken to prepare for the adoption of the Harmonized Commodity Description and Coding System which is expected to be implemented internationally in January 1988.
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