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WEDNESDAY, FEBURARY 5, 1975
HE POINTED O SOME INTEREST FREE TO THE COMPANY, I MEET ITS DEBTS AS
THAT THIS HAD A SPIRAL EFFECT AND UNLESS OR VERY LOW INTEREST FUNDS WERE MADE AVAILABLE WOULD SOON BECOME INSOLVENT 1.6. UNABLE TO THEY BECAME DUE.
IF THIS WERE ALLOWED TO HAPPEN THE COMPANY WOULD BE LIABLE TO WINDING-UP.
REFERRING TO THE POSSIBLE SOURCES OF INTEREST FREE OR VERY LOW INTEREST FUNDS, DR. CHUNG SAID: ÷NATURALLY, UNDER NORMAL CONDITIONS, THIS EXTRA FINANCING WOULD DE THE RESPONSIBILITY OF THE SHAREHOLDERS. LET US MAKE NO MISTAKE ABOUT IT.
+HOWEVER, IN THE LIGHT OF THE PRESENT POSITION OF THE COMPANY AND OF THE STOCK MARKET, IT SIMPLY CANNOT ATTRACT NEW CAPITAL. INVESTMENT FROM SHAREHOLDERS.
*WE WERE INFORMED THAT UNLESS THE COMPANY'S REVENUES WERE BOLSTERED FROM SOME OTHER SOURCE THE BANKS WOULD NOT REGARD THE COMPANY AS BEING CREDITWORTHY AND SO WOULD NOT PROVIDE MORE LOANS TO THE COMPANY EVEN AT CURRENT MARKET RATES OF INTEREST, LET ALONE INTEREST FREE LOANS.<
DR. CHUNG SAID OF COURSE, SOME PEOPLE MIGHT SAY THAT THE GOVERNMENT SHOULD SUBSIDISE OR EVEN NATIONALIZE THE COMPANY.
BUT HE ADDED THAT ONE COULD HARDLY SEE THE LOGIC OF USING PUBLIC FUNDS TO SUBSIDISE PUBLIC UTILITIES OF THIS NATURE.
ON THE ASPECT OF NATIONALIZATION, HE SAID, IT DID NOT NECESSARILY MEAN A MORE EFFICIENT AND ECONOMICAL OPERATION. MANY INSTANCES, THE RESULT WAS THE REVERSE,
IN
DR. CHUNG OPPOSED THE IDEA THAT THE GOVERNMENT SHOULD GIVE AN INTEREST FREE LOANS TO THE COMPANY.
→IN OUR PRESENT TIGHT FINANCIAL SITUATION,+ HE EXPLAINED +WE WOULD NOT WISH TO SEE FURTHER CUT BACKS IN OUR SOCIAL SERVICES, SUCH AS EDUCATION, HOUSING, MEDICAL SERVICE AND SOCIAL WELFARE.
+IF SUCH A LOAN WERE PROVIDED OUT OF OUR RESERVES WE WOULD LOSE THE INTEREST WHICH THAT AMOUNT IS NOW EARNING AND WE CANNOT AFFORD TO LOSE SUCH REVENUE IN THESE TIMES.+
DR. CHUNG STRESSED THAT IF AN EFFICIENT TELEPHONE SERVICE WERE TO BE MAINTAINED IN HONG KONG, THERE WAS NO ALTERNATIVE BUT THAT THE SUBSCRIBERS IN THEIR OWN INTERESTS SHOULD HELP SOLVE THE URGENT AND SERIOUS ISSUE.
L
/ SAID 'NIERE WERE
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