A

Our reference: ECO 173/2 (a) Your reference:

CB Benjamin Esq

DRITISH TRADE COMMISSION IN HONG KONG

Mail Address: P.O. Box No. 528, Hong Kong Cable Address: "Uktrade Hongkong" Telephone: 230176

9th Floor, Gammon House, 12 Harcourt Road, Hong Kong.

Projects and Export Policy Division

Department of Industry

Ashdown House

123 Victoria Street

London SW1

Hick 173/2

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PA

1. September 1980

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REQIVID

17 DEC 180

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23/9

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Chris.

THE ISLAND CORRIDOR LINE

(NIB

19.9

1. In my letter of 30 July said that a decision by the Txecutive Council on whether to co ahead with the construction of the island line (as an extension of the ass Transit Railway along the North shore of Hong Kong Island) had been postponed until Cctober.

2.

It now looks as if there will be even further delay. Norman Thompson who returned from leave earlier this week tells me that it now looks as if the Executive Council will not make up their minds until December because once again the papers will not be ready because key officials are on leave. Norman Thompson is now most concerned that he vill begin to lose hoy staff an it does seem to me that there is a risk of the dynamism of the MTR drive running out of steam.

3. Quite apart from the opposition genorated by the proponents of other foms of transport (eg the light rail system) there seen to be two other risks why the decision is han ing fire. irst, a lot of people believe that the MTR has not attracted the mass usage which was forecast. Trains are of course packed at the beginning and close of work but the phenomenon has arisen that Hong Kong is now getting a rush hour. This is simply because the commuter who need to allow 2-21 hours to get to work can travel in 30-40 minutes with the result that the peak movements are now concentrated. in the current hot weather spell the mass transit trains outside the rush hours are not very full. It is of course early days end the opening of the Den an extension at the end of 1982 may alter the picture but the buzz is that passenger usage is not up to expectations.

L..

Even

A second and I think more important factor is that the construction of an island line would suck in too much of Hon; eng's civil enginering resources and the Tong Kong Government needs to watch very carefully the timing of major projects to ensure that they are separated evenly over the decade. It could be therefore that a decision to go ahead on the ilan line roull have to take account of the decision on the new airbert (and the accompanying bridges) in order to avoid Hong Kong being faced with`e massive shortage of construction labour.

cclur Hobbs

CREF.

CONDENTIAL

/5.

Every effort is made to ensure that the information given herein is accurate, but no legal responsibility is accepted for any errors or omis sions in that information and no responsibility is accepted in regard to the standing of any firms, companies, or individuals mentioned.

QUNDINIS LOW CUMZAYUBA, CAPE DRINDIMAAR NINYOUCA

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