CO129-514-7 Alleged discrimination against U.S. interests in Hong Kong 17-1-1929 - 7-12-1929 — Page 26

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areas.

Permission took (and still takes) the

form of ordinary licences to individual vehicles.

The capital of the Companies was small and the

scheme entirely experimental. Accordingly the

cheapest form of vehicle, viz the Ford motor-bus,

was employed in the services. The experiment,

however, proved highly successful and it soon

became clear that the Ford motor-bus was both

inadequate in size and unsuitable and even (in

the hands of Chinese drivers) dangerous in design.

In 1926, therefore, in order that security of

tenure might encourage larger investment in this

form of enterprise and consequently better service

to the public, the three Companies were informed

that they would be granted licences for a period

of three years for sufficient buses to serve

certain specified routes. They were at the same

time given to understand that they must put better

vehicles, preferably of British construction, on

the road and gradually eliminate the Ford buses.

The result has been that the whole of Kowloon

Peninsula is now covered by a first class service

of British buses. No monopoly has been

specifically granted to the owners of these

services: but the traffic authorities consider

the public adequately served and the number of

vehicles as large as the roads can safely carry

and will therefore at present grant no licences

for additional buses. The Companies concerned,

are satisfied with their British vehicles, and

are not likely to court trouble by action

contrary to the known

preference of the

authorities for British vehicles.

3.