IMMEDIATE
*EN CLAIR
FM HONG KONG 140745Z
UNCLASSIFIED
RICOVE 2.
REGISTE
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HICK 21/4
TO IMMEDIATE F C O TELNO 178 OF 14TH FEBRUARY, 1973.
MASS TRANSIT RAILWAY.
PA
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любую
23)
THE FOLLOWING IS THE FULL TEXT OF A. STATEMENT MADE BY THE FINANCIAL SECRETARY IN LEGISLATIVE COUNCIL THIS AFTERNOON.
SIR,
(30)
ON 7TH JUNE LAST YEAR, I ANNOUNCED IN THIS COUNCIL THAT THE GOVERNMENT HAD TAKEN A DECISION IN PRINCIPLE TO PROCEED WITH THE CONSTRUCTION OF THE FULL MASS TRANSIT RAILWAY, SUBJECT TO SATIS- FACTORY ARRANGEMENTS BEING MADE FOR FINANCING IT AND FOR LETTING CONTRACTS. I ALSO ANNOUNCED THEN THAT THE GOVERNOR HAD APPOINTED A
SMALL STEERING GROUP TO WORK OUT THE BEST METHODS OF RESOLVING THREE IMPORTANT AND CLOSELY INTER-RELATED PROBLEMS, SO AS TO ENABLE A FINAL DECISION TO BE TAKEN WHETHER OR NOT TO GO AHEAD. THESE THREE PROBLEMS CONCERNED:
FIRST AND FOREMOST, THE AVAILABILITY OF SUFFICIENT OUTSIDE
CAPITAL ON APPROPRIATE TERMS AS REGARDS INTEREST RATES AND REPAYMENT ARRANGEMENTS
SECONDLY THE FORM OF TENDERING AND THE LETTING OF CONTRACTS: AND
THIRDLY THE MOST APPROPRIATE OPERATIONAL ARRANGEMENTS.
AFTER MORE THAN SIX MONTHS OF INTENSIVE INVESTIGATION,
THE STEERING GROUP HAS COME TO THE CONCLUSION THAT, IT SHOULD BE FOSSIBLE TO RAISE THE CAPITAL REQUIRED FOR CONSTRUCTING THE FULL
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MASS TRANSIT RAILWAY, FROM A COMBINATION OF SEVERAL SOURCES,
AND ON TERMS WHICH, BY PRESENT INDICATIONS, ARE LIKELY TO BE ACCEP- ABLE. THIS CONCLUSION, IN TURN, HAS STRENGTHENED THE GOVERNMENT'S BELIEF THAT THE SYSTEM WOULD BE FINANCIALLY VIABLE,
IN THE SENSE THAT A SUFFICIENT CASH FLOW WOULD BE GENERATED TO
ENABLE THE CAPITAL COST AND ACCUMULATED INTEREST TO BE REPAID
FROM THE REVENUE FROM FARES AND OTHER SOURCES, OVER A GIVEN PERIOD OF YEARS. AS A RESULT, THE GOVERNMENT CONSIDERED THAT THE
/DECISION