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CONFIDENTIAL

MON

I have been rather concerned over a lot of loose talk not least in the Transport Department of the Colonial Government to the effect that the British deliveries for the new buses are being unduly delayed. It is always difficult to get to the facts of the case when talking to Mr. Louey, the General Manager of Kowloon Motor Bus. But as far as I can make out he has not yet decided on the type of bus he requires, and it has therefore been impossible for Leylands to quote him a delivery date. In conversations with Sik-nin Chau, Louey and others I have taken the line that once K.M.B. make up their minds about the type of bus they want, Leylands will no doubt quote their best delivery date. If that delivery date is too far off to satisfy K.M.B., then the latter will no doubt place their orders elsewhere. Leylands know this as well as I do, and there is no point in my pressing them to quote an unrealistic delivery date.

I am afraid I am rather gloomy about the future of the Kowloon Motor Bus Company unless there is a change of personnel both within the company and within the Government Transport Department, but that is, of course, only a personal opinion.

Kai Tak Runway

I of course saw John Moreton's telegram Christian 5 sent during Lord Shepherd's visit. The press here seem to have interpreted Lord Shepherd's remarks as a definite refusal by Britain to contribute to the runway. Nobody of the public here now knows anything about the original British loan when the Kai Tak runway was first built. The reports of Lord Shepherd's speech therefore seem to have given us all the disadvantages that we might expect from an outright refusal to help with the extension. My personal view is that anything we now offer in the way of a contribution will not regain us much ground. Since therefore the Hong Kong Government appear to be insisting on international tenders, I myself feel we might as well save our money. But no doubt you have many other considerations to take into account.

Joyn Gowers, C.R.E. Department

John has been with us for the last week. This is the first visit from a C.R.E.D. man that we have had for two years. It does seem a great pity that desk officers in the Board of Trade and the F.C.O. cannot travel more frequently, especially to such an emotional place as this one.

CONFIDENTIAL

Every effort is made to ensure that the information given herein is accurate, but no legal responsibility is accepted for any errors or omis- sions in that information and no responsibility is accepted in regard to the standing of any firms, companies, or individuals mentioned.

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