CONFIDENTIAL
NOTED
Aw7/1
Enter My fail.
British Trade Commission in Hong Kong 9th Floor Gammon House 12 Harcourt Road Hong Kong
Mail Address PO Box No 528 Hong Kong
Telex HX 73031
C B Benjamin Esq PEP Division
Department of Trade 1 Victoria Street LONDON SW1
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23 Jan 23500
WAS
Cable Address Uktrade Hong Kong Telephone 5-230176
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Mr. Williams
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Your reference
Our reference
RECEIVED IN REGISTRY NO. 5T 3 1 DEC 1980
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PRO: 16/1
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23
MTR AND ASSOCIATED DEVELOPMENTS
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ECO 173/2 (A)
19 December 1980,
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In today's telegram Creda 319 I have reported that a final decision on the Island Line has been postponed for a week and that I have obtained some further information about the likely side effects of the MTR plans on tram services on Hong Kong island and in the New Territories.
2.
You will recall that in my letter of 30 July I referred to the inter-action of an Exco decision in favour of the Island Line on the future of the Hong Kong tramway system. As you know, these venerable vehicles run continually from Kennedy Town to Chai Wan along the planned route of the new Island Line and a full under- ground railway system would clearly have a fundamental effect on their revenue. The Hong Kong Tramway Company (which is a wholly-owned subsidiary of Hong Kong Wharf and Godown Company) has naturally been reluctant to modernise the system while the Hong Kong Government has been making up its mind on the merits of a new Island Line versus a light rail surface system.
3. Bill McCluskie, the Managing Director of Hong Kong Wharf and Godown, tells me that if the current MTR proposals are accepted by Exco, the Government are at the same time likely to invite Hong Kong Tramways to modernise their system. Not only are they prepared to do this but they believe that they could complete the necessary study for a complete modernisation on the existing track within six months. The Government will apparently insist that the existing track be used (which means that the Company could not introduce wide- bodied single deckers) with a new generation of double-deck trams. They believe that it would be possible to complete the operation within four years in order to begin earning revenue before the new MTR system comes into operation. The thinking behind a modernised tram system in addition to the MTR is that while the latter would take care of the longer distance traveller, the surface tramway could continue to deal with short-stop traffic.
4. McCluskie also expects to receive the go-ahead from Government for the completion of studies, on a single-deck tramcar system running on a segregated track between Tuen Mun and Yuen Long in the New Territories. McCluskie believes that earlier Government plans to delay
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