TNAG-0170-FCO40-206-British-Trade-Commissioner-1969 — Page 156

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10

Reference....

Mr. Carter

You asked me to find out whether the reference

in the Hong Kong Daily Information Bulletin to the Kowloon Motor Bus Company's request for a review

info

its franchise, recently discussed in Legco, was in any way related to the report we had heard from Leyland that the Government's policy in favour of British busses was to be changed. Mr. Purvis tells

me that he is sure that this is not the case but

that the request relates only to the basis on which the company at present pays royalty to the Government. It appears that the Kowloon company's royalties are assessed on a different basis from the China Motor

Bus Company and are heavy. As a result, the company has recently been in financial difficulty.

2.

I think that the best way of taking the Leyland point further would be to write to

Mr. Hannam and ask him to take it over. This is

properly his sphere of activity and I have drafted to him accordingly.

14 January 1969

Muur

H. H. Stewart

Hong Kong Department