TNAG-0422-FCO40-468-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 134

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

HAVE CREATED REQUIRMENTS WHICH ARE, IN A WAY, CONFLICTING.

ON THE ONE HAND, THE SYSTEM WILL NEED TO BE OPERATED ON COMMERCIAL

LINES IF ITS FINANCIAL VIABILITY IS TO BE ASSURED. ON THE

OTHER HAND, THE MAGNITUDE OF THE CAPITAL REQUIREMENT, THE LENGTH OF THE CONSTRUCTION PERIOD, AND THE IMPORTANT ROLE WHICH THE SYSTEM WILL HAVE TO PLAY IN THE GOVERNMENT'S OVERALL TRANSPORT POLICY IN THE 1980S, ALL POINT TO THE NEED FOR THE OPERATING AUTHORITY TO BE SUBJECT TO A GREATER DEGREE OF GOVERNMENT SUPERVISION AND CONTROL THAN HAS HITHERTO

BEEN APPLIED TO PUBLIC UTILITY UNDERTAKINGS IN HONG KONG, HAVING REGARD TO ALL THESE FACTORS, THE GOVERNMENT HAS

DECIDED THAT THE OPERATION OF THE MASS TRANSIT RAILWAY

SHOULD BE ENTRUSTED TO A PUBLIC CORPORATION ESTABLISHED UNER

A SPECIAL ORDINANCE. THIS CORPORATION IS TO BE INDEPENDENT

OF THE GOVERNMENT IN THE SENSE THAT IT WILL NOT BE A

J

GOVERNMENT DEPARTMENT - BUT WILL,

BUT WILL, AT LEAST INITIALLY, BE OWNED ENTIRELY BY THE GOVERNMENT. THE CAPITAL STRUCTURE OF THE

CORPORATION WILL, OF NECESSITY, HAVE A VERY HIGH LOAN GEARING

BUT THE GOVERNMENT INTENDS TO TAKE AN EQUITY POSITION IN THE FORM OF A CASH SUBSCRIPTION, LAND AND EXPENDITURE SO FAR CHARGED TO PUBLIC REVENUE. LATER ON, THE PUBLIC MIGHT WELL BE INVITED

TO SUBSCRIBE FURTHER EQUITY CAPITAL.

بشرة

SIR, AS I HAVE SAID A FIRM DECISION HAS NOW BEEN TAKEN TO PROCEED WITH CONSTRUCTING THE FIRST FOUR STAGES

OF THE MASS TRANSIT RAILWAY. THIS IS AN IMPORTANT DECISION

WHICH WILL ULTIMATELY AFFECT, IN ONE WAY OR ANOTHER, EVERY MEMBER OF THE COMMUNITY. MORE IMMEDIATELY, IT WILL

AFFECT A NUMBER OF GOVERNMENT DEPARTMENTS WHICH WILL BE

INVOLVED IN THE PLANNING AND CO-ORDINATION REQUIRED PRIOR

TO THE COMMENCEMENT OF CONSTRUCTION. I CAN ASSURE HONOURABLE

MEMBERS THAT EVERY EFFORT WILL BE MADE TO ENSURE THAT SUCH

PLANNING AND CO-ORDINATION WILL BE UNDERTAKEN EFFECTIVELY;

TO ENSURE THAT APPROPRIATE ARRANGEMENTS WILL BE MADE IN TIME

4.4.

/FOR THE

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