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(a) The fourth as "Chinese Hotels and Boarding Houses".

17. For the first category, the recommendation was maintenance of rates as existing on 31st July 1948, and the setting aside of

a certain percentage for the accommodation of "resident or

permanent guests" as distinguished from "transients" and Your

Petitioners respectfully draw attention to the admission by the

Committee in the report that this last recommendation was contrary

to the practice followed in the United Kingdom and other parts of

the world and that it interfered with the normal course of the

hotel industry.

18. In regard to the second category there were recommendations

for controlled rates and the setting aside of almost all the

accommodation for permanent or resident guests.

It will be noted

that except for two viz. The Lucky Apartments and The Tuk Lin

Apartments, (of which more later) these were the hotels catering mostly if not altogether to European clientele and some of these

hotels constitute those referred to in paragraphs 7(11) and 7(111)

on pages 7 and 8 of this Petition.

19. In regard to the third category, a low percentage (20 per

cent) of accommodation available was recommended for control.

20. In regard to the four th category, no control was recommended

save a possible tentative control of ten per cent of the accommoda-

tion in the bigger hotels.

21. From this analysis, Your Petitioners respectfully point out

that paragraph 7(iii) hereof is in the main supported by the

Committee's findings and recommendations insomuch that real

appreciable control is recommended only for a few residential

hotels in Class 2 catering to a purely European clientele.

22. An historical analysis is as follows :-

(a) By reason of complaints about rates from 50 European

residents of about half-a-dozen residential hotels (see

paragraph 8(11) and 7(111) hereof) Government initiated

19.

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