CO129-611-1 Hong Kong Electric & China Light & Power Company Ltd. 1-12-1945 - 2-5-1947 — Page 29

Administration of the expense of importing electrical machinery and the fact that the rental is not to be used by the company for distribution to shareholders gives it the aspect of a grant towards rehabilitation rather than an actual rental payment. This, however, is the main point which I shall have to discuss with you when you are ready. Under the a reement between the Colonial office and the War Office whereby we undertook that any ills presented after the date of hand-over would be met by the Colonial Covernment, any payment in respect of rent will now fall to be met by the Hong Kong Government as no payment was made during the period of the Military Administration.

This is a case where the agreement between the Colonial Office and the War Office operates to the disadvantage of the Colonial Covernment.

4.

I have extracted the following figures relating to the net cost of operating the property of the two companies which may be of interest:-

Deficits

Payments

Receipts

China Co.

1,394,223 pd.

475,670

1,086,000 0/3.

424,926

2,480,223

900.596

1,479,627

H.K.Electric.

918,871 pd. 1,114,000 0/5.. 2,032,871

708,146

389,674 1,097,820

935,051

% 2,414,678

£120,734 30,183

£ 150,917

You will see from the above that approximately $1,400,000 mo deficit will fall on the Colonial

of this

Government