TNAG-1060-FCO40-1310-Mass-Transit-Railway-in-Hong-Kong-1981 — Page 11

Members will be asked to advise whether :-

the Hong Kong and Kowloon Wharf and Godown Company's proposals for a modernised tramway system, as outlined in paragraph 4 above, should be rejected;

arrangements should nevertheless be made to maintain the existing tramway service until the MTR Island Line opens for service, or shortly thereafter;

to that end the Government should enter into negotiations with the Company to take over the tramway, holding in reserve the legal position under section 30 of the Tramway Ordinance (Chapter 107);

the negotiations should include the offer to the Company of the South Camber site in Canton Road in exchange for the Sharp Street tram depot site, with the Company being required to include facilities for the China passenger terminal in the Canton Road development, such facilities to be handed back to Government with an appropriate adjustment being made in premium;

the Mass Transit Railway Corporation should be invited to operate the tramway system, on terms to be arranged, after it is acquired by Government and until it is eventually phased out,

and

if the negotiations for acquiring the Sharp Street depot are successful, it should be offered to the MTRC by private treaty, at a suitable premium, for the construction of a concourse for the Island Line Causeway

Bay Station and later development above the depot, on

the understanding that it is maintained as a tram depot as long as is necessary,

C.S. 166

CONFIDENTIAL