CONFIDENTIAL
XCC(75)55
42
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3414 TEX
In the opinion of the Provisional Authority, therefore,
not only is the Railway still required, but it can still be constructed, operated and financed on a viable basis. They recommend, therefore, that it should now be proceeded with.
Public Reaction and Publicity
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Since the decisions in principle to proceed with the MTR were taken some three years ago, the media have generally been in favour of the project and the Chinese press, in particular, has, with two, or possibly three, exceptions, consistently supported it. Individual opponents of the Railway will doubtless continue to voice their objections and, given the importance of the project, their re- marks can be expected to receive publicity. There is, however, likely to be a solid base in the media which will support and welcome an early start on the project, especially if they are reassured that it will be financially viable.
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Publicity, therefore, must reflect the Government's confidence in the System's viability. There should also be renewed emphasis on the need for the Railway, because of the very severe traffic congestion to be expected in the 1980s, as well as on the fortunate timing of a decision to go ahead in a period when costs are stabilising.
45
Mention should be made of the Government's agreement
to grant to the Corporation, at full market value, the rights to develop property above the Pedder/Chater, Admiralty and Argyle stations, as well as the Kowloon Bay Depot. This will be represented as a normal development of railway premises, as is done elsewhere. It will also be pointed out that it will provide an additional safeguard against the Railway ever becoming a burden on the public finances.
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It should be re-emphasised that, apart from the Govern- ment's equity contribution of $800 million, all funds will be provided from export credits and other borrowings on the local and international markets. These funds could not be used for the many social projects which are often quoted by critics as being needed more than the Rail- way. They are available for the Railway only because it is a self- liquidating project.
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It should also be pointed out that, if the project were not to go ahead, numerous traffic problems would inevitably build up in the 1980s. Schemes of alleviation would involve a very heavy burden
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