XN000022-1974-03-13 — Page 26

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Wednesday, March 13, 1974

RENEWAL OF BUS FRANCHISES

Plans For Govt. Representation On KMB And CMB Boards

The Kowloon Motor Bus Company and the China Motor Bus Company

have both been informed that their franchises, which are due to expire

in February 1975, will not be renewed under the present terms.

Announcing this today, a government spokesman said that detailed

negotiations will be held with the companies regarding the terms for new

franchises which will be embodied in fresh legislation.

**These franchises will ensure that the government is in a position

to influence the operations of the companies effectively by closer participation

in their affairs," he added.

"Proposals are under consideration which will allow the government

to obtain a portion of the equity and to nominate government officers to

serve on the boards of the two companies.

"It is hoped that agreement can be reached soon so that plans

for improvements to the companies' services can proceed with all due speed."

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