CONFIDENTIAL ##
For discussion
on 29th July 1975
機密
XCC(75)45
Copy No. of 70
MEMORANDUM FOR EXECUTIVE COUNCIL
APPLICATION BY THE MASS TRANSIT RAILWAY PROVISIONAL AUTHORITY ON BEHALF OF THE FUTURE MASS TRANSIT RAILWAY CORPORATION FOR GRANT OF CERTAIN STATION
AND OTHER SITES FOR COMPREHENSIVE DEVELOPMENT.
RF
67
'IN
$1
290001175
Introduction
HKK21.
Paragraph 27 of memorandum XCS(75)1 which was dis- cussed in Council on 14th January 1975 contained the following state- ment:
"27
As regards the availability of other types of finance, proposals have now been made in the report at Annex D that consider- ation should be given to allowing the future Mass Transit Railway Corporation scope for developing station and other sites on a com- mercial basis and for the introduction of a premium bonds scheme. The current pro- posals, which were there, but not brought into play when analysing the viability of the Japanese Consortium's bid, would now provide a reasonable degree of assurance as to the viability of the system even if unforeseen adverse factors were to arise. For instance property development would off-set any revenue shortfall while premium bonds could offset any inability to obtain residual loan finance".
72)
A
2
The relevant part of Annex D of memorandum XCS(75)1 is at Annex A,
3
G
In addition to the normal contigency element allowed for in the proposals for the Modified Initial System, property development would provide a further substantial contingency element to allow a reasonable degree of assurance as to the System's viability So essential if the System is to be built even if unforeseen adverse factors were to arise. Assuming that the Corporation's development proposals (the four sites listed in Annex A) are accepted, the revenue from them could add eventually about 20% to the revenue of the Cor- poration; and this would be, therefore, a very important element in ensuring the economic viability of the Modified Initial System.
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