The shift of Dong Kong's economic base from manufacturing to services
requires a stronger emphasis on a dispersed spatial development strate
gy away from the central urban area surrounding the inner harbor and a
re-orientation toward the Pearl River Delta region of China in Dong K
ong's port development after 1997, To compete successfully with its ne
ighbors in the Asia Pacific region and with Chinese counterparts such
as Shanghai and Guangzhou, Dong Kong has to anticipate the impact of t
he new informational technologies on urban development, which has brou
ght about a multinucleation process for cost-minimization as has been
occurring in the US. This paper examines Dong Kong's evolving ecologic
al structure and the importance of its Port and Development (PAD) Stra
tegy in shaping a new outer port area oriented toward the Pearl River
Delta of China and a decentralization of economic activities away from
the inner port area after 1997, An extended shift-share analysis and
spatial development simulation have presented four scenarios of develo
pment. The decentralization scenario with emphasis on the development
of self-contained new towns is the preferred choice if Dong Kong is to
improve its space of flows. With the construction of the new airport
in Chek Lap Kok in Lantau Island, Dong Kong is well prepared to mainta
in its importance as one of the world's financial and transshipment ce
nter after the sovereignty transfer of 1997. (C) 1997 Elsevier Science
Ltd. All rights reserved.