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APPENDIX
Background Notes:
Extracts from press reports
(Tin Tin Daily News: August 21)
A source said the "fight" for the right to operate a navigation service between Canton and Hong Kong has not ended and the situation is still intense. If there is a direct navigation service in future, will the right finally be granted to the Hong Kong and Yaumati Ferry Company? Or is there to be a hovercraft service only? Will Shun Tak Shipping Company's proposal of a night ferry service be accepted by the Kwangtung authorities?
The source said there are signs indicating that the granting of right will be discussed by Britain and China. It is generally believed that the Peking authorities will discuss with Britain and Hong Kong, the navigation service together with the air link and a possible direct train service.
Reliable sources revealed that the Hong Kong and Yaumati Ferry Company has the upper hand in the "fight" and is being supported by Liao Cheng-chih. Liao is the son of former Kuomingtang leaders, Liao Chung-kai and Ho Hsiang-ning, and is a cousin to the family of Mr. Edmond Lau. Liao Cheng-chih's cousin, Mr. Liao En-te, has been a famous doctor in Hong Kong for more than 30 years. Liao En-te is a director of the Hong Kong and Yaumati Ferry Company. News that Liao Cheng-chih has lent a helping hand to the Hong Kong and Yaumati Ferry Company is not groundless in view of the relationship.
(Asian Wall Street Journal: September 25)
According to informed sources, the success of Mr. Lau's overtures to the Chinese authorities was largely due to the influence of his uncle, Dr. Liu Yan-tak, a senior director of the company who has close ties with high Chinese officials. Dr. Liu was, for 14 years, head of the Bank of China's clinic here and was recently put in charge of a clinic that the Hsinhua News Agency is starting in a new self-service hotel it recently bought in the Happy Valley section of Hong Kong for about HK$70 million (US$14.7 million).
Dr. Liu is the father of Henry Liu, who last month was authorized by the Chinese government to conduct preliminary negotiations with foreign companies interested in helping China develop its tourist industry, including the construction of hotels.
Dr. Liu is also a close friend of Liao Cheng-chih, a vice chairman of the National People's Congress who is head of the Overseas Chinese Affairs Office.
It is believed that Hongkong & Yaumati Ferry had asked for an exclusive franchise of five or 10 years for its Hong Kong-Canton service. However, this has apparently been denied.
Another company, Shun Tak Shipping Company, had also declared its interest in running a Hong Kong-Canton service. But the agreement reached by Hongkong & Yaumati Ferry and the Chinese authorities, coupled with China's declared intention to conduct its own ferry service, makes Shun Tak's chances appear dim. Shun Tak currently operates ferry service between Hong Kong and Macao.
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