CO129-616-6 Hotels Ordinance- 1949 21-2-1949 - 21-2-1949 — Page 83

Secretariat file 5/3371/49.

CONFIDENTIAL

No. 42.

Enclosure 1

Enclosures 2 and 3

Enclosure 4

Enclosure 5

Sir,

GOVERNMENT HOUSE,

ch.

HONG KONG,

10 March, 1949.

201

I have the honour to submit for the signification

of His Majesty's pleasure the following Ordinance intituled:-

2.

An Ordinance to make provision for the control of accommodation provided by and charges made by hotels.

An explanatory report by the Attorney General showing the reasons and occasion for passing the Ordinance is also enclosed, together with a statement that in his opinion assent may properly be given. Two copies of the Gazette Supplement containing the Ordinance are also enclosed.

1

3.

In accordance with Colonial Regulation 187, I take this opportunity to forward for your consideration a petition dated the 17th February, 1949, from the Hong Kong and Kowloon Hotels and Boarding Houses Association making representations concerning the passing into law of the above-mentioned Ordinance, and praying for its disallowance.

4.

This petition was the subject of your confidential

(2) telegram No.217 of 22nd February and my telegram No.187 in (44)

(4).

reply wherein I informed you of the considerations which prompted me to proceed with the Bill, which passed its third reading on 23rd February.

5.

A summary was given in my telegram No.187 of reasons which in my opinion justify the rejection of this petition, but I take this opportunity of commenting at greater length on the main points which the petitioners seek to make.

6.

The implication that the control of hotel rates was initiated as recently as July 1948 is not, of course, consistent with the facts. As far back as September 1946 the Price Control (Hotel Services) Regulations, 1946 were made as Defence Regulations under powers conferred by section 2(1) of the Supplies and Services (Transitional Power) Act, 1945 as applied to this Colony. Regulation 4 of those Regulations empowered a Competent Authority by Order to fix maximum charges for all or any hotel services, including the provision of lodging. In fact no order was made under those Regulations for the reason that the Quartering Authority found it possible to apply control of rates by way of a "gentlemen's agreement". This agreement or understanding was entered into by the Competent Authority with hotel managements at a time when derequisition of hotel accommodation was taking place. By this means he ensured that hotel rates would not, for Hong Kong residents, be greater, or not much greater, than the rates payable while hotels were under requisition. In July, 1948, the Price Control (Hotels) (Control of Charges) Regulations, 1948, were made in replacement of the Regulations of 1946. The 1948 Regulations constituted

/an amplification

14

77

THE RIGHT HONOURABLE

ARTHUR CREECH JONES, M.P.