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3.

In the Island of Hong Kong the history

of motor-huses has followed similar lines.

Apart from certain small and semi-private services,

no motor-bus services were permitted on the Island

till last year. Certain Companies had applied

for permission to supplement by buses the service

afforded by the electric trams. Two of these

Companies were firms already engaged in trans-

portation services and both proposed to use

British buses and Government after some hesitation

agreed that the somewhat narrow and tortuous

streets of the city could be safely used by a

limited number of buses.

Licences were

accordingly granted for these services to the two

Companies referred to viz. The Hong Kong Tramway

Company and the Hong Kong Hotel Garage.

4.

It is therefore submitted that in

actual practice this Government has followed the

lines suggested in your despatch. As a result

it is known that concessions in the matter of

motor-bus services are only likely to be given to

.........

concerns undertaking to use British vehicles, and

at the same time all the profitable routes of the

Colony are filled with British services of such

adequacy as to form sufficient grounds for refusing

licences for additional services.

5. I must confess, however, that I am

somewhat at a loss to understand why foreign car

manufacturers should complain of these indirect

methods of protection in a British Colony, while

Great Britain herself openly imposes a heavy import

duty on their products, unless perhaps it is the

case that notwithstanding the safe-guarding duty,

a

foreign

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