CR 1/5481/78
RC Samuel Esq
Far Eastern Department
F CO
CONFIDENTIAL
HONG KONG-CANTON HOVERFERRY SERVICE
21 November, 1978
AKK 020/1
RELLIVED IN REGISTAY KO. 51
4 DEC 1978
INDEX
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The inaugural run of the new hover ferry service
to Canton took place on 17 November.
2.
The start of the new service follows some months of negotiation between the Hongkong & Yaumatei Ferry Company (HKYF) and the Chinese authorities in Canton. Most of the discussions on behalf of HKYF were carried out by Mr Edmund Lau, the General Manager. A significant aspect of the success of the discussions seems to have been the personal link of the Lau family (and one of their Directors, Dr Liao En-teh) with Liao Ch'eng-chih who seems to be the man in Peking most actively involved in Hong Kong affairs. According to Edmund Lau, Liao's active support for the new service helped to overcome many bureaucratic difficulties. They also benefitted from the personal interest and inter- vention of Hsi Chung-hsun, the Kwangtung Second Party Secretary who effectively runs the provincial Party in the absence of Wei Kuo-ch'ing, the First Secretary.
3.
The upshot of the negotiations is that HKYF have a monopoly on the service for five years. Initially there will be three sailings a day from each end (at 7.30 a.m., 11.30 a.m. and 3.30 p.m.) but the service may be expanded when HKYF can obtain more hovercraft and if the traffic justifies it. The cost of a ticket is HK$65. Booking arrangements are dealt with by China Travel Service which takes 40% of the proceeds and distributes this share to the various Chinese organisations involved.
The
4.
The inaugural service went without a hitch. opening ceremony was performed here by Malcolm Alexander, the Director of Marine, who went on the initial run to Canton together with a selection of invited guests from local business concerns and the press. In Canton a simultaneous opening ceremony was performed by Kuo Jen-chie, the Deputy Director of the Kwangtung Marine Transport Bureau. The first ferry from Canton had on board a selection of invited Chinese guests led by Cheng Shao-k'ang, Deputy Director of the Canton
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CONFIDENTIAL
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