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COMINCIAL IN CONFIDENCE
British Trade Commission in Hong Kong 7th Floor Shell House Queens Road Central Hong Kong
Mail Address PO Box No 528 Hong Kong
Telex HX 3031
1. M. Farry, Esq.,
Cable Address Uktrade Hong Kong Telephone H-230176
Department of Trade,
Overseas Finance & Planning Division,
1 Victoria Street,
London, SW1H OET.
Enter
p.
30
Your reference
Our reference
21/1 Annex
Date
20 March 1975
RECEIVED IN
24/Hi!
RECISTYY Ha, 51
24 MAR 1975
MASS TRA.SIT
HKK 21/4
I enclose a copy of the Hong Kong Government Gazette containing the Mass Transit Railway Corporation Bill. I draw your attention, in particular, to Clause 6 (3) which gives the Corporation power to develop land for purposes not directly associated with mass transit. Jones, Secretary for Economic Services, told me the other day that the purpose of this clause was to pro- vide the lass Transit Corporation with a potential source of revenue, should the bids submitted in reply to the tenders for the representative works show that the scheme is likely to be more expensive than the Provisional Authority's estimate. While Jones made it clear that the Hong Kong Government would not be prepared to subsidise the scheme to any significant extent, it is clear that they are looking for ways and means for providing for some flexibility in the interests of ensuring that it goes ahead on schedule. All this has a bearing on paragraph 2 of your Tel Creda 60.
2. If there are doubts about the viability of the scheme, I can only say that Thompson has made the point on a number of occasions that the Provisional Authority has, quite deliberately, drawn up an extremely conservative financial projection.
3.
man;
For what it is worth, I judge Thompson to be a determined and capable if anyone can get the scheme off the ground, I am sure he will and I think it is a great pity that the civil contractors have not been prepared at least to send someone out to talk to him.
Enclosure.
I. A. C. Kinnear
Senior British Trade Commissioner.
Copies to: Mr. Panton, LCGD
Mr. P. L. O'Keefe, HKIOD, FCO Miss Welch, CRE 4.
LACH/al
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