XCC(81)47
CONFIDENTIAL 機密
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Indeed, they are now, at their own risk and with the agreement of Government, conducting a feasibility study of the proposed China services terminal and other possible developments on the site, So if Members agree, it is probable that negotiations could be started at short notice. This would be desirable as, not only do the MTRC need a very early indication of the arrangements under which their concourse might be constructed at Sharp Street, but the Government is also anxious for an early start to be made on the construction of the China terminal, given that the existing temporary arrangements for China passenger shipping services at Tai Kok Tsui are unsatisfactory and inadequate to meet the build up of these services.
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Tramways Ordinance
22
The Tramways Ordinance (Chapter 107) provides comprehensively for the construction, maintenance and operation of the tramway, specifically by the Hong Kong Tramways Limited. Section 30 of the Ordinance provides for the time span of the original franchise to be 50 years from 23rd May 1902, but there is no question of the franchise expiring thereafter unless Govern- ment exercises its right of purchase. Section 30 also makes provision for the Governor in Council to require the Company to sell its undertaking, including all land, buildings etc., to Government, such power, however, only to be exercisable at five yearly intervals after the completion of the original franchise term in May 1952. The next opportunity to exercise this power would be in May 1982, subject to at least six months prior notice of Government's intention being given to the Company. The proviso to section 30 sets out the determination of consideration regarding valuation of the undertaking for the purpose of sale to the Government and it also provides that, if an order is made under section 30, all the Company's rights, powers and authorities will vest in the Government,
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The above sets out the legal position. But, if early negotiations are commenced with the Wharf (Tramway) Company for an exchange of the Sharp Street depot for the South Camber site, these negotiations could also include the handing over of the tramway operation, including arrangements for staff, etc. And, if a satisfactory conclusion is reached, there seems to be no reason why a mutual agreement might not be made for the arrange- ments to take effect before May 1982. If so, it might be necessary to amend the Tramways Ordinance and certain amendments could be needed in any case. The legal questions at issue are currently under consideration and, if the proposals in this memorandum are accepted in principle by Members, their advice will be sought in due course on any amendments to the Ordinance that may become necessary.
G.S. 166
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