Enclosure 2.

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13

(3) To direct that, in future, when the question of

concessions or of proposed extended facilities

to the Motor-Bus licensee, as to routes, increased

services or departures from the scale of fares

specifically named in Schedule "B" of Notifica-

tion No. S.319 of 2nd September, 1932, be under

consideration by the Hong Kong Government, full

and fair opportunity be given your Petitioner

of submitting its representations.

(4) To direct that the said Tramway Ordinance No.10

of 1902 be so modified in respect of Section

No.47 thereof as to relieve your Petitioner of

the heavy increase in the rate of its future

Royalty obligation.

2.

A brief history of The Hong Kong Tramways

Limited is set out in paragraph 4 of the petition and in

Appendix A thereto. It will be seen that the present

company was formed in 1922 when it acquired as a going

concern the undertaking of The Hong Kong Tramway Company,

Limited (formerly the Electric Traction Company of Hong

Kong Limited) which was originally incorporated in 1902.

The construction of the tramway was authorised by

Ordinance No.10 of 1902 (The Tramway Ordinance, 1902)

copy of which, as subsequently amended, is enclosed.

Section 47 of the Tramway Ordinance sets

out the royalties to Government which the company is

required to pay. It reads as follows:-

3.

(1) The company shall not be required to pay any

royalty for ten years after the tramway has

been opened for public traffic, but in con-

sideration of the rights, powers and authorit-

ies hereby granted or conferred, the company

thereafter

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