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THE 'BUY COMMONWEALTH CLAUSE IN THE FRANCHISES OF THE HONG KONG BUS COMPANIES
Introduction
1. Bus services in Hong Kong are operated under government franchises by two independent companies, the Kowloon Motor Bus Company and the China Motor Bus Company. The franchises have traditionally contained a stipulation requiring the companies to buy buses of Commonwealth origin (for all practical purposes this has in effect meant BLMC vehicles).
The
2. The franchises of the companies are now due for renewal and, in the course of consideration of the revised terms, the appropriateness of the inclusion of the 'Buy Commonwealth' requirement has been questioned in the Executive Council. challenge, though ostensibly on grounds of discrimination and therefore possible incompatibility with GATT principles, is in all probability inspired by the professed opposition of the bus companies to the retention of the clause. It is also unpopular with the public in Hong Kong at large. Earlier criticism had already led the Hong Kong Government to modify the provision in the draft franchises so that exemptions may in future be granted by the Governor alone instead of, as previously, by the Governor in Council.
3. Lord Stokes, or another senior representative of BLMC, will be calling on the Governor at the FCO on 20 December for a
discussion of the matter.
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/Background