ENG-1989 — Page 275

TRANSPORT

international conventions are translated into legislation and applied to Hong Kong ships. The Technical Policy Division also provides representation for Hong Kong at technical conferences on matters including maritime safety, pollution and manning, in association with representatives invited from Hong Kong Shipowners' Association.

The enactment of the United States' Tax Reform Act 1986 on foreign shipping has posed problems for both the existing and future Hong Kong shipping register as well as for a large number of Hong Kong shipowners. The Act imposes tax on all foreign shipowners whose ships trade with the United States. To overcome these problems, the Hong Kong Government has entered into an agreement with the United States for reciprocal tax exemption on shipping income. The agreement was signed in August 1989 and will take effect retrospectively from January 1987.

Civil Aviation

At the opening session of the Legislative Council in October, the Governor announced the government's intention to proceed with plans to develop a replacement airport at Chek Lap Kok off the north coast of Lantau Island, in concert with plans for future port and urban development. The target date for the opening of the new airport is June 1997.

This announcement followed consideration of the results of a number of consultancies and studies which were completed during 1989. The findings of the Kai Tak Development Potential Consultancy indicated that even with a large-scale expansion scheme the existing airport would not be able to meet forecast air traffic demand much beyond the mid-1990's. Further studies were commissioned to establish the preferred site for a replacement airport.

The Alternative Replacement Airport Sites (ARAS) Consultancy established that a two-runway airport could feasibly be developed on a reclaimed artificial island in the Western Harbour area of Hong Kong west of Lamma Island. However the Chek Lap Kok Master Plan Review Consultancy confirmed the findings of earlier studies which proposed Chek Lap Kok as the preferred location for a replacement airport for Hong Kong.

(Details of the Port and Airport Development Strategy are illustrated in the end-paper map at the end of this Report.)

At the Hong Kong International Airport, which is administered by the Civil Aviation Department, a number of new works projects were launched to cope with the forecast demand in traffic.

To enable the airport to accommodate projected growth the government has accepted in principle the recommendations of a consultancy study on the capacity and development potential of Kai Tak Airport. The consultants recommended a comprehensive package of improvements and the introduction of ‘demand management'. As a result a phased implementation programme was initiated to provide a broad range of expanded facilities to handle up to 24 million passengers a year.

To meet the forecast requirement for aircraft parking positions, work commenced in September 1989 on an extension to the cargo and long-term aircraft parking facilities. The first phase, which is expected to be completed in September 1990, will provide three additional B747 parking positions. Meanwhile, work on the extension of the passenger aircraft parking apron was completed in September 1989, providing additional parking spaces for two B747 jets or up to six smaller aircraft.

Work commenced in November to construct a further two floors on the existing multi-storey carpark. This would provide an additional 500 car parking spaces by mid-1991.

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