TNAG-0564-FCO40-659-Construction-of-an-underground-railway-system-in-Hong-Kong-1975 — Page 5

C.S. 166

Page

CONFIDENTIAL

機密

XCC(75)55

(g) in June 1974: to introduce the Mass Transit Railway

(Land Resumption and Related Provisions) Bill into the Legislative Council (this was subsequently passed in August 1974);

(h) in January 1975, after the withdrawal of the Japanese Consortium: to proceed with the Modified Initial System on a multi-contract basis, as described in paragraph 1 above. (The Financial Secretary held a press conference on 14th January 1975 to announce the withdrawal of the Japanese Consortium as well as the approval to proceed with the Modified Initial System and wound up an adjournment debate on 22nd January 1975);

(i) in February 1975: to introduce the Mass Transit

Railway Corporation Bill into the Legislative Council (this was subsequently passed in May 1975).

Action since January 1975

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Since approval in principle was given to proceed with the Modified Initial System, a great deal of work has been done by the Mass Transit Railway Provisional Authority so as to be ready to begin to let contracts as from September/October. In undertaking this work, speed has been essential for three reasons: first, there is a limit to the time during which the interest of potential contractors and financiers can be sustained. Secondly, every effort had to be made to ensure that the maximum benefit was derived from the present world economic situation, with relatively low tender prices and the availability of finance on favourable terms. Thirdly, the abortive negotiations with the Japanese Consortium had already involved a delay of at least twelve months in the commencement of construction and yet the contribution of the Railway to the easing of traffic congestion and the development of the public transport system will still be needed in the early 1980s.

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In order, therefore, to be in a position to award contracts at the earliest possible date, the Provisional Authority has:

(a) checked and updated all former costings and estimates

relating to the Modified Initial System;

(b) continued the recruitment of staff for the future MTR

Corporation;

(c) further analysed and clarified the terms on which finance, including export credit finance, would be

available;

CONFIDENTIAL

機密