CONFIDENTIAL
For discussion
on 13th July 1971
XCC(71)37
Copy No .... of 27
MEMORANDUM FOR EXECUTIVE COUNCIL
NEW AIR CARGO TERMINAL : KAI TAK
INTERNATIONAL AIRPORT
On 22nd June 1971, having considered memorandum XCC(71)33, a copy of which is annexed, Honourable Members advised and the Acting Governor ordered, subject to the approval in principle of the Finance Committee of the Legislative Council to the appropriation of the necessary funds for Government's share of the equity capital, that the establishment of a consortium to build and operate the proposed new air cargo terminal should be proceeded with on the basis outlined in paragraph 4 of the memorandum.
2
When the Finance Committee was invited to approve in principle the provision of up to $1 million from the Development Loan Fund to meet Government's share of the initial equity capital for the proposed consortium, several Members expressed certain misgivings:
(a)
(b)
about the participation of the only two public companies engaged in cargo handling, namely, the Hong Kong and Kowloon Wharf and Godown Company Limited and the Hong Kong and Whampoa Dock Company Limited to the exclusion of other (private) godown interests; and
about the fact that the Government was to be the smallest of the minority shareholders, though they recognised that the 10% shareholding proposed was sufficient to secure Government representation on the board of directors.
At least two Members also thought that the public should have the opportunity of investing in the company at the outset and not at a later stage as envisaged in paragraph 5 of memorandum XCC(71)33.
3
It was explained to Members that the initial capital
subscriptions of the five participants, namely
%
Jardine, Matheson & Co Ltd Butterfield and Swire (Hong Kong)
Ltd
30
30
Hong Kong and Kowloon Wharf and
Godown Co Ltd
15
Hong Kong and Whampoa Dock Co Ltd 15
Hong Kong Government
10
100%
CONFIDENTIAL