XN000022-1974-10-16 — Page 71

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Wednesday, October 16, 1974

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of the specified price at which the railway is calculated to be commercially viable. Doubts have recently been expressed as to the wisdom of continuing with this project in present circumstances. I would have thought it apparent that what was judged an acceptable proposition a year ago, at the same

There is a tide in price is an acceptable: proposition now. such affairs, and if we miss this one it will be some years before we could float. the project again. Moreover, we have. every right to have confidence in our future; the project is still judged to be within our resources; Secretary and his team have put an immense amount of work into the intricate and technical work of negotiating the contract; and provided they can do so at the specified price, I am sure we should all heartily wish them success.

The Bus Companies:

the Financial

Detailed negotiations have been conducted over the past months with both the Kowloon Motor Bus Company and the

China Motor Bus Company with a view to agreeing revised franchises for their operations. The discussions have now produced agreement on detailed schedules of services, route-by-route for 1975/76. together with the numbers of buses to be provided to achieve acceptable frequencies. Plans for bus capacity looking ahead to the year 1980 have also been agreed, on reasonable assumptions about the demand for bus travel over this period. I hope that these discussions will lead to final agreement between the Government and the two companies under which new franchises can be granted to commence next February.

An essential element in

/these would