TNAG-2080-FCO40-2960-Hong-Kong-politically-sensitive-issues-1991 — Page 43

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Part II Issues of interest from a UK and/or China perspective

CONFIDENTIAL

Position as at 30.6.1990

Issue

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 will soon be appointed for the investigation, design and construction of the works on Hong Kong side for the reception and distribution of the additional water. The annual business meeting between the Hong Kong and Guangdong sides will be held in late June/early July to review the water supply situations of the year. A technical sub-group will also visit Hong Kong to discuss detailed technical matters.

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