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037552 MDLIAN 6334
PROJECTS, TRANSPORT LINKS SEWERAGE SCHEMES, HOSPITALS ETC. GEC/ALSTHOM WON THE FIRST PHASE OF THE 6.000 MW BLACK POINT POWER STATION CONTRACT IN MARCH, GIVING HONG KONG A CONTINUED GUARANTEED FULLY RELIABLE POWER SUPPLY INTO THE NEXT CENTURY. NEW RAILWAYS BOTH TO THE BORDER FROM THE CONTAINER PORT, AND TO CONNECT WITH VARIOUS NEW TOWNS IN THE NEW TERRITORIES (LINKS PROVIDING MUCH NEEDED RELIEF TO OVERSTRETCHED ROADS) ARE UNDER STUDY. DESIGN CONTRACTS FOR PHASE 1 OF THE AMBITIOUS SEWAGE STRATEGY SCHEME TO SOLVE THE APPALLING SEWERAGE PROBLEM IN KOWLOON ARE SHORTLY TO BE AWARDED. THE LONGER-TERM PROJECT TO TAKE THE TREATED EFFLUENT FAR OUT INTO THE SOUTH CHINA SEA VIA A GIANT DEEP-BORED TUNNEL WILL NEED CHINESE AGREEMENT, BUT THE SCALE OF ITS CONCEPTION MATCHES HONG KONG'S CAPACITIES. THE ENVIRONMENT, TRANSPORT AND ENERGY ARE NOW AT THE CENTRE OF HONG KONG'S PRIORITIES. UK FIRMS HAVE ENORMOUS OPPORTUNITIES BUT THE COMPETITION IS INTENSE. THE HONG KONG GOVERNMENT OPERATE A LEVEL PLAYING FIELD.
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LARGE PROJECTS ARE THE ICING ON THE GINGERBREAD. HONG KONG, INCREASINGLY AFFLUENT AND DISCRIMINATING, IS ALSO A GROWING MARKET FOR A WIDE RANGE OF UK GOODS FROM CONSUMER TO CAPITAL GOODS. UK EXPORTS, POUNDS 1.38 BILLION IN 1991, ROSE TO POUNDS 1.62 BILLION IN 1992 AND ARE UP AGAIN 28 PERCENT FOR THE FIRST 7 MONTHS. HONG KONG IS NOW THE UK'S 13TH LARGEST MARKET AND THE 2ND LARGEST MARKET IN ASIA AFTER JAPAN. INVISIBLES ARE ESTIMATED TO EARN THE UK AN ADDITIONAL POUNDS 1.3 BILLION P.A. THERE ARE OVER 900 UK COMPANIES, IN HONG KONG WITH NET ASSETS CONSERVATIVELY ESTIMATED AS AT LEAST POUNDS 6 BILLION.
SUMMARY AND CONCLUSIONS.
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THERE IS A MOMENTUM HERE WHICH ASTONISHES NEWCOMERS, PARTICULARLY FROM A UK WHERE PLANNING CONSTRAINTS AND GENERAL WORK ETHIC MEANS THAT PROJECTS OFTEN MOVE AT HALF HONG KONG'S PACE. IF PEKING CAN BRING ITSELF TO WITHDRAW ITS POLITICAL VETOES FROM THE AIRPORT FINANCING AND CT9, THE PSYCHOLOGICAL EFFECT ON BUSINESS SENTIMENT WOULD BE SUBSTANTIAL. IN MANY RESPECT'S 1997 HAS ALREADY BEEN DISCOUNTED AND HONG KONG'S TRANS-BORDER BUSINESS ACTIVITIES DEMONSTRATE THE COMMUNITY'S DETERMINATION TO WORK OUT THEIR FUTURE WITH THE PRC. FOR UK EXPORTERS, THE HONG KONG ROUTE INTO CHINA IS INCREASINGLY IMPORTANT, UK RE-EXPORTS VIA HONG KONG NOW ACCOUNTING FOR ONE-THIRD OF OUR TOTAL EXPORTS TO CHINA (COMPARED WITH ONE- TENTH 6 OR 7 YEARS AGO). THOUGH WE MAY FACE ANOTHER STORMY PASSAGE WITH CHINA THIS AUTUMN, THE MEDIUM AND LONG-TERM EXPORT PROSPECTS
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