TNAG-0955-FCO40-1174-Legislation-for-traffic-on-roads-in-Hong-Kong-1980 — Page 284

CONFIDENTIAL ## 機密

For discussion

HKK 1772/1

า2

PAJ 2.2 раз

on 29th January 1980 RECEIVED IN REGISTRY NO. 51

XCC(80)15

Copy No Page 1

DESK OFFICER

REGISTRY

07 FEB 1980

MEMORANDUM FOR EXECUTIVE COUNCIL

Aw 7/12

MEMORANDUM OF UNDERSTANDING WITH

*

KOWLOON MOTOR BUS COMPANY (1933) LIMITED (KMB) AND CHINA MOTOR BUS COMPANY LIMITED (CMB) AND

APPLICATIONS FOR FARE INCREASES

of 40

A

Introduction

On 8th January 1980, having considered memorandum XCC(80)4,

a copy of which is at Annex A, the Council advised and the Acting Governor ordered:

that the negotiations to achieve a legally binding memorandum of understanding should be concluded with each company and the draft memorandum submitted to the Council. In each case it should be in a form acceptable to the company management and approved by the Attorney General, before any decision is taken on the timing of fare increases. Subject to this the Council agreed the schedules of fares in Annexes C and G.

G.S. 166

2

The Council noted:

(a) that the Financial Secretary maintained his objection to

any immediate fare increase for KMB other than for cross-harbour routes, subject to further amplification of KMB's financial position by the Secretary for the Environment;

(b) that the Secretary for the Environment had expressed

the view, in the course of the discussion, that CMB services could be adversely affected if the proposed fare increases for CMB were not approved before Chinese New Year;

(c) that the Government would be ready to comment publicly

should CMB fail to pay the promised wage increases to drivers and seek to blame the Government; and

(d) that in drafting the final memoranda of understanding,

regard would be had to similar agreements already concluded successfully with other public utilities.

CONFIDENTIAL #

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