The Lok Ma Chau Loop will be used to develop high technology industries without causing severe environmental impacts, Secretary for Development Carrie Lam said.

In a meeting yesterday with members of Heung Yee Kuk, a statutory advisory body representing the indigenous inhabitants of the New Territories, Lam said that the government has commissioned an academic institute to launch a three-month study on the use of the area last month.

According to the opinions collected, high technology industries with low pollution should be developed in the area and an education hub was suggested, said Lam when briefing members of the Heung Yee Kuk on the government plans to develop new towns in New Territories.

A clearer development concept will be made next year, Lam added.

The government also plans to develop Fanling North, Kwu Tong North and Ping Che by 2014, turning the 830 hectares of land into towns.

A HK$50 million study on the project's impact on traffic, environment and heritage in these areas will be completed in 2010.

Heung Yee Kuk chairman Lau Wong-fat urged the government to be cautious when developing new towns in New Territories.

He said members of the advisory body were worried thatproblems that trouble Tin Shui Wai might happen in the three areas.

Tin Shui Wai is described as the "city of sadness" after a number of family tragedies took place there.

"The government should ensure that there will be enough education and medical facilities. People living there should be able to get a job near their home. That will attract people from other districts to move there," he said.

(HK Edition 04/15/2008 page1)