TNAG-0955-FCO40-1174-Legislation-for-traffic-on-roads-in-Hong-Kong-1980 — Page 1

MEMORANDUM FOR EXECUTIVE COUNCIL

36

whititek 172

MEMOKANDA OF UNDERSTANDING WHI K172

KOWLOON MOTOR BUS COMPANY (1933) LTD. (KMB)

AND CHINA MOTOR BUS COMPANY LTD. (CMB) AND THE APPLICATIONS FOR FARE INCREASES

of 80

A, B

G.S. 166

Introduction

On 25th September 1979, when Members considered memorandum XCC(79)91 and Informati on Paper XCCI(79)16 (copies of which are at Annexes A and B), the Council advised and the Governor ordered:

(a)

(b)

(c)

(d)

that a legally binding memorandum of understanding be negotiated with, and entered into by, each of the two companies, KMB and CMB separately, containing a programme, acceptable to Government, of improve- ment by the respective companies, with a fixed time- table, covering the five areas outlined in paragraphs 13-17 of memorandum XCC(79)91;

that satisfactory sanctions against breach of the terms of the memorandum should be devised, and that consi- deration be given as to whether these should be statutory or contractual;

that each company be informed, and required to acknowledge and accept in writing, that any failure to fulfill in whole or part, without good cause, any of the improvements agreed in the memorandum of understanding would constitute sufficient reason for the Commissioner for Transport to report to the Governor in Council that that company was not providing a proper and efficient omnibus service;

that steps be taken forthwith to amend the Public Omnibus Services Ordinance so as to:

(i)

(ii)

enable the Government or its nominee to purchase at an appropriate valuation or by arbitration any company assets taken over under section 25 of the Ordinance and, if necessary, to dispose of them to another company;

enable the Governor in Council lawfully to roll forward the franchise if so desired once satisfied that an efficient service was likely to be provided;

CONFIDENTIAL #

機密