TNAG-0276-FCO40-312-Plans-for-construction-of-underground-railway-system-in-Hong-1970 — Page 39

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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the first line would go into operation in

16 years.

Alternative methods of mass transport

have been considered. A Long Term Road Study

has been carried out by the Public Works

Department which concluded that the cost of

Flac, G.

the maximum road improvement possible over the next 15

years at an estimated cost of some £137

million would be inadequate to cope with the

increase in traffic.

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The Government of Hong Kong are now studying

the Freeman Fox Report especially from the

financial angle and have not yet come to a

decision as to whether the project is a

viable one. Some Government officials are

of the opinion that an accelerated road

building programme with increased charges for motor vehicle parking (to make it less

attractive to own motor vehicles) would be

preferable to the underground railway project

with its high cost and long construction

period. The Government of Hong Kong are not

likely to come to a decision in this matter

until, possibly, the end of 1971, but, when

they do, their decision will be based on the

most exhaustive investigation of the financial

and economic aspects and, should it be in

favour of the underground railway project,

we can be sure that they are completely

satisfied that it will be an economic

success.

Should the Government's decision be in

favour of construction of an underground railtay,

the contract will be a very valuable one.

For a British construction firm to obtain the

contract, it will have to offer credit terms

and it will have to obtain cover from Export

Credit Guarantee Department to be able to do this.

The E.C.G.D. wrote to the Treasury on 9

September asking for views on the political and

commercial problems which are likely to be

raised by an application for cover for this

project. The Treasury in turn have written to

Export Promotion Department asking for advice

about the project and the political situation

in Hong Kong. They are of the opinion that

a credit term of up to 20years from the

start of the project would not be acceptable but, as no approach from the Government of

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/Hong Kong

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