CO129-611-1 Hong Kong Electric & China Light & Power Company Ltd. 1-12-1945 - 2-5-1947 — Page 51

Centlemen,

11th January 1946

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With reference to the series of discussions wich have taken place between representatives of the Hong Kong Electric Company and the China Light and Power Company, and representatives of the Military Administration regarding the terms on witch both these enterprises should be operated, I am directed to inform you that the final pro osals of the Ad:inistration are as folloWB :

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1.

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4.

5.

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 Military Administration for

a period of six months from the 1st September 1945.

6.

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.

The Military Administration will employ and pay all the personnel of both Companies who are to the satisfaction of the Commander-in-Chief or Senior officer Commanding, available for duty in Hong Kong and capable of being usefully and profitably employed in the duties suggested by the Companies whose personnel they are; but the Administration shall not be responsible for any payment in respect of any employees of the Companies during their absonce from the Colony.

The Military Administration may, at i's own cost, employ such additional personnel, including Service personnel, as it may deem necessary.

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No depreciation shall be charged for use of plant, but the M111 ary administration shall restore to reasonable offective running condition such of the Companies' plant, machinery and buildings as may be operated or utilised by the said Administration during the period of the à reement.

For the use of the Companies' undertakings the Military Ad inistration shall pay for the period of the Agreement a rental at the rate of 4% per annum upon the values of such undertakinys as represented by the market values at

6th December 1941 of the total of their issued shares on that date. Such rental shall be divided between the Companies in propor ion to the unita generated by each Company during the period of the Agreement or otherwise as the Companies may mutually agree. Any rental so paid shall not be distributed among the shareholders.