TNAG-1920-FCO40-2724-Hong-Kong-water-supply-from-China-1989 — Page 9

acurately

this

With regard to (b), we cannot at present predict the cost of water from 1991/92 to 1998/99 as depends on the negotiations.

25

We should be able to assess the overall financial implications once the negotiations have been concluded. These will be contained in a further submission to Members on the out come of the negotiations.

26

There are no direct staffing implications linked to this recommendation. However, it will be necessary to acquire additional st aff resources and incur consult ancy costs to design and implement the waterworks infrastructure in Hong Kong to receive and transfer the much larger supply of water from China.

Economic Implications

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As the cost of the additional water supply has yet to be negotiated with the Chinese Authority, we cannot at present assess the cost impact on water users. However, if the negotiations founder, the provision of the necessary water supply after 1994/95 would be delayed or rendered inadequate. Shortage of water, if significant, would have adverse social and economic implications for Hong Kong particularly for domestic life and for those industries and trades which are large users of water.

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Public Reaction

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The public are aware from media reports of the forthcoming negotiations with the Guangdong authorities on future water supply. The Chinese intention

intention to upgrade the East River water supply system has been reported, as has the proposal that Hong Kong should contribute to the financing.

The

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The main concerns of the public are security of supply and the implications for future water charges. negotiations themselves are unlikely to be of great interest to the public although this

this could change if it was thought that the Chinese were taking a domineering line.

Publicity

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No publicity is proposed and no Legislative Council brief will be issued, for the time being. A press line will be prepared, and revised as the negotiations progress. If there is media interest, and subject to a successful outcome a press conference will

will be held to explain the provisional

agreement.