CO129-581-11 Electricity Supply- proposal to establish a cross-harbour line from Hong Kong Electric Company Ltd.- to... 14-12-1938 - 12-5-1939 — Page 2

53983/39

2

secret

به مری را

14.12.38.

Discusses advisability of laying down

A

cross-Karbon

line to connect works of the H.K. Pectric to. Eld. with those of the thing Light & Power to. Ltd.

The laying down of a cross-harbour line

at an estimated cost of $500,000 to connect the

works of the Hong Kong Electric Light Company on the Island with those of the China Light and Power Company on the mainland is considered by the local Defence Committee to be very desirable, but not vitally

necessary. The (unofficially ascertained) attitude of the two Companies is at present that technical and other difficulties could be overcome, but that the Companies do not consider that they should have to

meet any of the cost of the scheme. As, however, the scheme is not considered to be vitally necessary,

the Government could not undertake to defray the cost

entirely on their own account.

There is also the possibility of the

execution of the scheme as part of a voluntary merger between the two Companies, but this, I should say, is a

pretty remote pos sibility. In the first place,

Secondly,

both Companies enjoy a de facto monopoly.

the peak load occurs in both cases at the same times, and it is not therefore probable that the merger would result in any appreciable economy in running costs. As far as the Companies are concerned, the line would be virtually a "dead" line except in cases

of emergency, and the only advantage would be to

ensure continuity of supply to their consumers in case

of a breakdown for any reason in one of the producing

plants. The advan tage to the consumers is thus

more apparent than that which would accrue to the

Companies