TNAG-2080-FCO40-2960-Hong-Kong-politically-sensitive-issues-1991 — Page 15

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

CONFIDENTIAL

Part II

Issue

Issues of interest from a UK and/or China perspective

Position as at 30.9.1990

Objective/explanation

Present status/progress

China

interest*

UK

interest*

Secretary for Works

Water Supply from China beyond 1994

On 21 December 1989 the Hong Kong Government entered into an agreement with the Guangdong Authority to expand the water supply from the East River scheme from 660 to 1,100 million cubic metres (mcm) per year to ensure adequate water supplies into the next century. Business meetings are to be held annually between both sides to review water supply situations of the year and the need for ad-hoc increase in water supply. The Hong Kong Government has agreed to advance a total of (HK$) 1,580 million

(interest-free) to Guangdong to finance their side of the project. Repayment of the advance will commence in 1995 by deducting a certain.

percentage from the monthly payment of water charges on the water supply quantities

over and above 660 mcm per

year.

Consultants have been appointed in September 90 to undertake the investigation, design and construction of Package I of the Stage I works on Hong Kong side for the reception and distribution of the additional water. Consultants for the remaining package are expected to be appointed in October/November 90. The first annual business meeting between the Hong Kong and Guangdong sides. was held in Hong Kong during 2-8 July 1990 to review the water supply situation of the year. The first Design and

Construction Technical Sub-Group meeting was held in Hong Kong during 25-31 July 1990 to discuss technical matters concerning both sides.

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CONFIDENTIAL ##

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