TNAG-2527-FCO40-3696-Hong-Kong-China-Relations-Committee-1992 — Page 70

28.

(a)

15

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The following major issues were considered in the ensuing discussion :-

The representatives of the Guangdong Provincial Planning Commission

expressed concern over the capacity of the existing freight terminal at

Hung Hom which might not be adequate to handle the rail freight traffic

between Hong Kong and Guangdong. The problem of derailment as a

result of different rail design standards adopted by Hong Kong and

Guangdong would also need to be addressed.

(b)

The Guangdong representatives suggested that certain irrationalities in the

port planning of Hong Kong and Guangdong should be rectified, taking

account of the relative advantages of both places. For instance, they

considered it a wasteful use of resources for Hong Kong Government to

engage in expensive reclamation works for port development whereas the

supply of land at Yantian was relatively abundant. Competition between

Hong Kong and Guangdong in port development would inevitably drive

up port charges to the detriment of the economic development in both

places. Notwithstanding the above, they recognized that in the short to

medium term, the scale of port development in Southern China would

unlikely pose any major challenge to the pre-eminent position of Hong

Kong. They also expressed grave concern over the soaring land premium