CONFIDENTIAL
014715
MDHIAN 2467
1988). A STUDY COMMISSIONED IN OCTOBER 1987 REPORTED IN 1988 THAT KAI TAK RISKED REACHING CAPACITY WITHIN FIVE YEARS UNLESS A WIDE RANGE OF IMPROVEMENTS WERE MADE TO EXTEND ITS LIFE. A COMPREHENSIVE PACKAGE OF WORKS HAS BEEN PUT IN HAND TO IMPLEMENT THESE IMPROVEMENTS. THESE INCLUDE PROVIDING ADDITIONAL 30 PARKING BAYS, UPGRADING AIR TRAFFIC CONTROL EQUIPMENT AND PROCEDURES, AND IMPROVING ROAD ACCESS TO THE AIRPORT. IN ADDITION, IN 1988 WORK WHICH DOUBLED THE CAPACITY OF THE PASSENGER TERMINAL WAS COMPLETED. ON COMPLETION OF ALL THESE WORKS IN 1993, KAI TAK WILL BE CAPABLE OF HANDLING 24 MILLION PASSENGERS PER ANNUM. BUT NO FURTHER EXPANSION WILL BE POSSIBLE.
4. THE 1987/88 STUDY ALSO CONCLUDED THAT IF KAI TAK WERE NOT REPLACED, THE QUANTIFIABLE ECONOMIC DISBENEFITS RESULTING FOR HONG KONG BETWEEN 1996 (WHEN THE STUDY CONCLUDED CAPACITY AT KAI TAK WOULD BE REACHED) AND 2006 WOULD AMOUNT TO OVER GBP6.5 BILLION. THE WIDER UNQUANTIFIABLE ECONOMIC LOSS WOULD BE CONSIDERABLY HIGHER.
5. IN VIEW OF THE RESULTS OF THIS STUDY, FURTHER STUDIES WERE COMMISSIONED IN 1988 TO REVIEW THE CHEK LAP KOK MASTER-PLAN AND REVISE AIR TRAFFIC FORECASTS. A COMPREHENSIVE STUDY OF THE MOST FAVOURED ALTERNATIVE AIRPORT SITE ON RECLAMATION IN THE WEST HARBOUR WAS COMMISSIONED IN PARALLEL. THE PORT AND AIRPORT DEVELOPMENT STRATEGY STUDY, KNOWN AS THE PADS STUDY, ALSO COMMENCED IN 1988 AND TOOK INTO ACCOUNT THE RESULTS OF THESE TWO STUDIES INTO ALTERNATIVE AIRPORT SITES. THE PADS STUDY CONCLUDED THAT A STRATEGY BASED ON LOCATING THE NEW AIRPORT AT CHEK LAP KOK WAS SIGNIFICANTLY THE BEST OPTION ECONOMICALLY, ENVIROMENTALLY, FINANCIALLY AND IN TERMS OF URBAN AND TRANSPORT PLANNING CONSIDERATIONS. IT ALSO MET OTHER KEY CRITERIA REGARDING PROGRAMMING AND FLEXIBILITY.
THE PORT AND AIRPORT DEVELOPMENT STRATEGY
6. IN OCTOBER 1989 THE GOVERNOR OF HONG KONG ANNOUNCED TO THE LEGISLATIVE COUNCIL THE HONG KONG GOVERNMENT'S INTENTION TO IMPLEMENT THE SELECTED DEVELOPMENT STRATEGY. WITH REGARD TO THE AIRPORT ITSELF, HE ANNOUNCED THAT IT WAS SCHEDULED TO COME INTO OPERATION IN 1997 AND WOULD CONSIST OF TWO RUNWAYS CAPABLE OF OPERATING 24 HOURS A DAY, WITH A CAPACITY TO HANDLE 80 MILLION PASSENGERS PER ANNUM OVER THREE TIMES THE MAXIMUM CAPACITY OF KAI TAK. HE ALSO ANNOUNCED THAT THE FUTURE EXPANSION OF PORT FACILITIES WOULD TAKE PLACE INCREMENTALLY ALONG A PENINSULA OF LAND TO BE RECLAIMED EXTENDING INTO THE WESTERN HARBOUR FROM
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