CO129-611-1 Hong Kong Electric & China Light & Power Company Ltd. 1-12-1945 - 2-5-1947 — Page 49

Gontlemen,

11th January 1946

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With reference to the series of discussions which have taken place between representatives of the Hong Kong Llectric Company and the China light and Power Company, and reprosentatives of the Military Administration regarding the terms on which both these enterprises should be operated, I am directed to inform you that the final proposals of the Administration are as follows :

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The Hong Kong Electric Company and the China Light and Power Company will be operated by their own Board of Directors under the direction of the killtary Administration for

a period of six months from the lat September 1945.

The Military Administration will pay all operational and general charges in respect of the period of the agreement but the Directors' fees will be specifically excluded.

All earnings will be for the account of the Military Administration on whose behalf full accounts will be kept by the Companies.

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The Military Administration will employ and pay all the personnel of both Companies who are to the satisfaction of the Cormander-in-Chief or Senior officer Commanding, available for duty in Hong Kong and capable of being usefully and, rofitably employed in the duties suggested by the Companies whose personnel they are; the Administration shall not be responsible for any payment in respect of any employees of the Companies during their absence from the Colony. The Military Administration may, at its own cost, employ such additional personnel, including Service personnel, as it may deem

1160088ary.

No depreciation shall be charged for use of plant, but the Military Administration shall restore to reasonable effective running condition such of the Companies' plant, machinery and buildings as may be operated or utilised by the suid Administration during the period of the Apreement.

For the use of the Companies' undertakings tre Military Administration shall pay for the period of the Agreement a rental at the rate of 4% per annum u on the values of such undertakings us represented by the market values at

6th Decembor 1:41 of the total of their issued shares on that du co. Such rental shall be divided between the Companies in proportion to the units generated by each Company during the period of the Agreement or otherwise us the Companies may mutually agree. Any rental so paid shall not be distributed among the shareholders.

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