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APPENDIX "S."
LETTERS EXCHANGED BETWEEN PETITIONER'S SOLICITORS AND
THE GOVERNMENT.
Letter Number 1.
(ENCL.)
SIR,
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Letter Number 2.
DEACONS,
1, DES VEUX ROAD CENTRAL,
HONG KONG, March 12th, 1935.
SIR,
DEACONS,
1, DES VEUX ROAD CENTRAL, HONG KONG, March 4th, 1935.
The attention of our clients, The Hong Kong Tramways Ltd., has been called to an article which appeared on the 1st instant in the Chinese newspaper, Wah Kiu Yat Po. The impression given by that article is shortly to the effect that the Govern- ment is going to relax the conditions governing the operation of the motor bus service on the Island of Hong Kong granted some 20 months ago to the China Motor Bus Co., Ltd.
Our clients have had no confirmation of the above but according to the article it would appear (inter alia) that under the new arrangement contemplated the China Motor Bus Co., Ltd. will be decreasing the fares on routes competing with our clients and increasing them on routes not so competing and furthermore the number of buses operating on the routes already served by our clients will be greatly increased.
In this connection our clients ask us to point out that it is the policy of the Ministry of Transport in England in all cases to consult long standing transport con- cerns operating under statutory powers when they are approached by new companies who wish to compete or wish to alter the conditions prevailing, in order to avoid wasteful competition.
In this connection we need hardly remind you that our clients are a long estab- lished concern of good financial standing operating under statutory powers paying a royalty to the Government which royalty will be increased in 3 years' time from 5% to 25%.
If the information contained in the article in question is correct our clients respectfully request that they may be given details of the new proposed conditions so that they may have an opportunity of considering same and, if necessary, laying their views thereon before the Government before any definite arrangement is come to with the China Motor Bus Co., Ltd.
Re. HONG KONG TRAMWAYS, LTD. AND CHINA MOTOR BUS CO., LTD.
Further to our letter of the 4th instant and to the interview our Mr. Turner had with you, Mr. Bellamy, our clients' General Manager, has been afforded an inter- view with the Inspector General of Police and we now enclose a memorandum prepared by Mr. Bellamy.*
We would respectfully request that you consider the contents of such memo- randum, which speaks for itself, and will afford our clients an opportunity of further explaining their position before any arrangement is come to with the China Motor Bus Co., Ltd.
We are sure you will appreciate that rightly or wrongly our clients consider that any arrangement come to between the Government and the China Motor Bus Co., Ltd. must be subject to taking into consideration not only the interest of the public but also the interests of our clients.
THE HONOURABLE COLONIAL SECRETARY.
We have the honour to be, Sir,
Your obedient servants,
(Signed) DEACONS.
*NOTE: This enclosure has been set out as Appendix "M."
Letter Number 3.
No. 1/470/1932.
COLONIAL SECRETARY'S OFFICE,
HONG KONG, 29th March, 1935.
THE HONOURABLE COLONIAL SECRETARY.
We have the honour to be, Sir,
Your obedient servants,
(Signed) DEACONS.
GENTLEMEN,
With reference to your letter of 12th March, 1935, on behalf of the Hong Kong Tramways, Limited, objecting to certain variations of the licence granted to the China Motor Bus Company, Limited, and to your appearance in the matter before His Excellency the Governor in Council on the 28th March, 1935, I am directed to inform you that His Excellency is advised that the Government has at present no power to prevent the China Motor Bus Company, Limited, from charging such fares as they may see fit, not being in excess of the maxima laid
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