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the

- 3-

Government can returns for increased land sales

in Kowloon, assessments, relief perhaps of the overcrowding

in the Central Districts of Hong Kong with the consequent

saving on Sanitary and resumption work: it cannot in fact

pay far in advance for probable general developments, and

will hardly do more than follow hard on the heels of

development. Although the future of Hong Kong, justifies

an optimistic outlook, a Company can only base its

calculations on more immediate possibilities and if their

terms are accepted Government will be bound for a period

during which (granted a rivival of trade) a much broader

use could have been made of the Ferries than would be made

by the provision of increased dividends to shareholders.

Increased profits in Government hands could be invested as

reduction of fares, without the pitfalls of conditions

in advance, showing a growing return in general prosperity.

The direct profits from the Ferry would no doubt

be less under direct Government control than under the

management of a private Company: but an enhanced total

return to Government would still be available for the benefit

of the Community.

a

5.

The long leases of practically all wharves in the

Colony expire in 1949 19 years hence. A private company

which entered into an undertaking of the kind contemplated

in the tenders, with some $2,000,000 Capital required,

would hardly be content with a lease of 19 years only: and

the Star Ferry suggestion is in fact a fifty years lease of

the Jubilee Street and Jordan Road sites. Just at this

juncture when freedom from some of our old troubles is in

sight, it seems a pity to begin tying our hands afresh.

6.

The ideal solution for the difficulties of

development and transport in Hong Kong occasioned by the

Harbour is a bridge or tunnel.

Both have been seriously

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