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Wednesday, June 7, 1972

earlier, just over $5,000 million after ploughing back the revenue earned after

the

opening of the early stages. Construction costs are, however, rising and

can be expected to rise further, so the actual cost will probably be much

greater than this. Clearly, an enormous sum of money will have to be raised,

And then there is the problem of ensuring that the system is financially viable

in the sense that the capital cost and accumulated interest can be repaid from

the revenue from fares and other sources over a given period of years.

"Clearly, it is incumbent on Government to be very sure of all the

financial aspects of the project before committing the community to such

tremendous expenditure. In particular, we must not put either our ability

finance our other commitments or our liquidity or our fiscal policies at risk

}

Viable Community

"Sir, if in the end, it does not prove possible to build the Mass

Transit Railway, I mist make it clear that the measures needed to ensure that people can continue to get to and from work and for goods to continue moving

will need to be more and more severe as time goes on. They will certainly not

OL MA.

be popular and will be greatly criticised by some. Yet they will be necessary

in the general interest if Hong Kong is to continue to function as a viable

community in the years to come. It is because the Government would like to

avoid having to introduce such severe measures that it has taken a decision

in principle to build the Mass Transit Railway and I can assure honourable

Members that every effort will be made to resolve the financial problems involved. "

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