CO129-611-1 Hong Kong Electric & China Light & Power Company Ltd. 1-12-1945 - 2-5-1947 — Page 67

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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such repairs and renewals in a manner whereby they will be one step towards a long-term policy and not have to be removed or demolished after the Rehabilitation Period is over.

(ii) Should any difference arise between the

Directors and Government as to what constitutes short-term policy - such difference shall be submitted to a competent and impartial arbitration.)

PROFIT shall consist of a return to shareholders based on the Company's last known annual profit available for distribution. This remuneration shall be proportional to the period of the Agreement.

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A special account shall be kept of all Receipts and Disbursements which account will be subject to Government inspection.

8.

During the period of the Agreement, any profits made over and above those necessary to meet the Cost plus Profit Scheme as set out above shall be for Government Account.

9.

To my mind the advantages of the above suggestion are:-

(a) A return to commercial operation even if only in

theory, is a very important psychological step towards restoring normalcy.

(b) The facilitating of an actual return to Commercial Operation as soon as sufficient Civilian Staff are available to take over.

(c) It promotes co-ordination and allows Government

to adjust rates in accordance with general policy. A Company could be operated at a loss such loss to be borne by Government if this is considered advisable in the interests of keeping costs of living down during the Rehabilitation Period and until normal supply and demand enables prices to find their true level.

(a) It will provide Government with a vast amount of

information which may prove invaluable towards shaping the future policy of the Colony.

(e) From a shareholder's point of view it places the Company on a profit basis - enabling start to be made towards providing for long-term commitments.

lk:mab 25.9.45

sgⱭ/> LAWRENCE KADOORI

25/9/45.

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