XN000022-1975-09-09 — Page 2

TUESDAY, SEPTEMBER 9, 1975

MASS TRANSIT RAILWAY TO GO AHEAD

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A GOVERNMENT SPOKESMAN SAID TODAY THAT THE GOVERNOR IN COUNCIL HAS ACCEPTED THE RECOMMENDATION OF THE MASS TRANSIT RAILVAY PROVISIONAL AUTHORITY TO PROCEED WITH THE CONSTRUCTION OF THE MODIFIED INITIAL SYSTEM, SUBJECT TO SATISFACTORY COMPLETION OF DETAILED FINANCIAL ARRANGEMENTS AND DOCUMENTATION.

IN MAKING THEIR RECOMMENDATION, THE PROVISIONAL AUTHORITY HAD REGARD TO THREE FACTORS: FIRST, THE RESULTS OF TENDERS RECENTLY RECEIVED FOR FOUR REPRESENTATIVE CIVIL ENGINEERING CONTRACTS. THESE TENDERS, TOGETHER WITH OTHER INFORMATION AVAILABLE TO THE PROVISIONAL AUTHORITY RELATING TO COSTS GENERALLY, INDICATE THAT THE MODIFIED INITIAL SYSTEM CAN BE CONSTRUCTED FOR LESS THAN $5,000 MILLION. THE TOTAL COST OF THE SYSTEM, INCLUDING LAND AND ALL OTHER COSTS, WILL BE OF THE ORDER OF $5,000 MILLION.

SECONDLY, THE PROVISIONAL AUTHORITY OBTAINED PROPOSALS FOR EXPORT CREDIT FINANCE AND FINANCE FROM OTHER INTERNATIONAL AND LOCAL SOURCES. THE DETAILED TERMS AND CONDITIONS ON WHICH THESE CREDITS WILL BE MADE AVAILABLE ARE NOW BEING FINALISED WITH THE FINANCIAL INSTITUTIONS CONCERNED.

AND, THIRDLY, THE PROVISIONAL AUTHORITY UNDERTOOK FURTHER RESEARCH INTO HONG KONG'S FUTURE TRANSPORT REQUIREMENTS IN ORDER TO CONFIRM THEIR EARLIER REVENUE FORECASTS.

A MOTION WILL SHORTLY BE INTRODUCED INTO THE LEGISLATIVE COUNCIL TO SEEK AUTHORITY TO GRANT GOVERNMENT GUARANTEES FOR THE NECESSARY LOANS.

IT IS ALSO EXPECTED THAT THE MASS TRANSIT RAILWAY CORPORATION ORDINANCE WILL SHORTLY BE BROUGHT INTO EFFECT BY ORDER OF THE GOVERNOR. THIS WILL ESTABLISH A MASS TRANSIT RAILWAY CORPORATION, WHICH WILL TAKE OVER FROM THE PROVISIONAL AUTHORITY ALL RESPONSIBILITY FOR THE PROJECT.

THE MODIFIED INITIAL SYSTEM WILL RUN SOME 15.6 KİLOMETRES FROM KWUN TONG, AROUND NORTH KOWLOON, DOUN THE NATHAN ROAD CORRIDOR AND ACROSS THE HARBOUR TO CENTRAL DISTRICT ON HONG KONG ISLAND. IT WILL TAKE ABOUT 4-1/2 YEARS TO CONSTRUCT AND SHOULD BE IN FULL OPERATION IN EARLY 1980. THE SYSTEM HAS BEEN DESIGNED SO THAT IT CAN BE PROGRESSIVELY EXTENDED IN LATER YEARS.

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THE GOVERNMENT SPOKESMAN SAID THAT, UNLESS THE PRESENT PUBLIC TRANSPORT SYSTEM WAS AUGMENTED, SEVERELY CONGESTED TRAFFIC CONDITIONS WOULD BE EXPERIENCED IN THE 1960'S. THE SOCIAL AND ECONOMIC CONSEQUENCES OF SUCH CONGESTION WOULD BE VERY DAMAGING FOR THE FUTURE OF HONG KONG.

+AN UNDERGROUND