CO129-466 - Individuals - 1920 — Page 552

Avenue 6100.

HERBERT SMITH,

Sollaltor.

60. Mark Lane.

London

E.C.3.

518

days before the 31st May that they were in a position to make the proposal embodying the immediate provision of £25,000. for deposit and expenses. It was felt that without this the statement would not meet the requirements of the Government.

It should be emphasised that the Promoters were the Originators of this scheme for developing this district, that they were in every sense loyally working hand in hand with the Government to make it an ideal district with good and cheap transit to the City and good and cheap kouses and building sites. Unless the whole thing is done on an extensive seals by a Development Co. the ideals which the Promoters and the Government jointly had in mind will never be attained.

It has already been stated that the tramway will coat three to five times pre war prices, and it must be evident to the Government that if the Agreement as it stands had been considered a specially attractive one from a financial standpoint the re would have not been the trouble there has been in financing it even though finance generally has been very difficult.

Should the Agreement be modified to the detriment of the Promoters the Hong Kong Government will be making it even more difficult to obtain

Their interference in the necessary devebpment money. refusing the N.E.C.Co. has already been sufficiently disastrous without further interfering with the agreement itself.

A

Knowing the great difficulties they have experienced the Promoters take the strongest possible exception to starting "de novo" or altering the Agreement, unless to make it more favourable to the Promoters in view of the high cost of constructing and running the tramway. It would be fatal to the best interests of the district if the Promoters were to accept an Agreement which would cause Development Co., if formed, to always be in financial straits. A successful Development Co. is essential for the best and most rapid development, and a Company for such a district can only become successful if reasonable terms are granted. This was made quite clear to the Government and was accepted in the earlier interviews. The early development of Repulse Bay has been an essential reckoning in the Promoters' scheme for the Colonial Government to make this an exception now would be to invite failure.

Yours faithfully,

Herbertsant.

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