CO129-592-9 Future Policy in Hong Kong- Port Administration 13-1-1945 - 4-3-1946 — Page 81

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(D) Mr. Dodwell called attention to correspondence which had passed between Matheson and Co., and the Under Secretary of State, whereby in a letter dated 26th July, 1945, the Company had been told that their proposal that the star Ferry Co's lease be renewed "on terms to be arranged" for a further period of 30 50 years, would be recommended; and that this has been intended as an authority to the Company to proceed on the assumption that the lease would be renewed. He said that he believed the Company had not as yet taken any steps as a result of this agreement. Mr. McElderry said he would make enquiries in order that the position might be clarified.

(c) Mr. Nicol considered that, taking a long view, the provision of another vehicular ferry would not be a satisfactory solution owing to the rapid growth of the traffic. He mentioned American examples of the use of such tunnels which confirmed that the proposed method of constructing the sub-aqueous tunnel would be feasible and satisfactory. On a basis of 1939 prices he estimated the cost of construction at 16,000,000 dollars. It was mentioned that there would be 40 fect of water above the "blanket" on top of the tunnel at low water level. In view of the lower cost on constructing the tunnel as a result of the method proposed, and Mr. Ficol's opinion that on a toll basis the tunnel scheme would be financially sound, it was agreed that the scheme should be considered further,

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The meeting was then adjourned. A further meeting will be called when Mr. Melmoth has provided the information required from him.