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The principle underlying the Public Trust system of Port control is that shipping should only be taxed to the extent necessary to provide the accommodation and facilities it needs.
It is important to bear this in mind in Hong Kong. In a country or place which has to import goods for use or consumption within its borders, the argument may be used that the direct charges on shipping do not much affect the position. It is the goods that have to bear the cost of transport and it is the consumer who eventually pays all the costs incurred by the goods. Higher charges mean high priced goods. This may start the usual vicious circle but that is another matter. What is of vital consequence is that in a place such as Hong Kong where the bulk of the trade is entrepot in character, high charges on shipping would not affect the price of the goods to the consumer. Most of the goods are not consumed there and if charges were too high the goods would simply not come, which would be to the serious detriment of the trade and prosperity of the Colony.
(m) At the end of the experimental period of three years, if the Trust is found to function satisfactorily, it should be established on a permanent basis, with the same constitu- tion and duties, subject to any modification that may be deemed to be desirable in the light of the experience gained.
NOTE.
3
It is hardly possible for me now to go closely into the question of finance which would arise. After the experiment- al period of three years the position should be clearer. The idea would be to make the Trust self-supporting and, from calculations which I have made on figures of expenditure, etc., supplied to me, I should not think that there would be any difficulty in this. The matter would require careful and sympathetic treatment at the hands of the Government, bearing in mind the vital part the Harbour plays in the economic structure of the Colony.
With respect to any capital expenditure for the construc- tion of piers, the Government could borrow on behalf of the Trust and the rent of the piers só constructed vould bo sufficient to cover interest on capital, mintenance, etc. In fact, the Trust should not enbark on any work involving capital expenditure unless the work would become self- supporting.
The question of the staff for the working of the Trust would also require careful consideration. One way would be to regard the personnel as still in the Civil Service, but their remuneration would be recouped to the Government out of the revenue of the Trust.
84. I have thus outlined my conception of the Trust which, after careful consideration, I recommend should be established as the solution of the problem of Hong Kong's Harbour. I have refrained from going into much detail, but, if the scheme be adopted, I presume it would be necessary to pass an Ordinance authorizing it, the exact scope and wording of which would be carefully attended to by the legal officers of the Government.
I can fully appreciate that difficulties of some sort are bound to arise in carrying the scheme into effect, but, if the proposals herein contained meet with the approval of the Governor, then with goodwill and determination on the part of the commercial interests coupled with the loyal co-operation of responsible Government officials, there should be no difficulty which cannot be surmounted.
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