TBCR 2/5591/79 XVII
COMEDENTIAL
P.V. Quick, Esq.,
Managing Director,
Kowloon Canton Railway Corporation,
KCR House,
Sha Tin,
New Territories.
Annex E
6 July 1984.
Tuan Mun/Yuen Long LRT
Please refer to your latter of 30 April 1984
and my interim reply on 1 June 1984.
11
Regarding funding arrangements, it is noted that in your letter of 30 April 1984 an understanding was sought for repayment to start from 1995. The Government is agreeable in principle for repayment of the $1 billion Government loan to be deferred until the start of 1993, as indicated by the base case in your financial forecasts. This assurance is given on the understanding that the Corporation would continue to pay interest on the loan at prime. Consideration of other types of support, if necessary, as referred to in your letter could be given only if more details are provided.
As regards competition from other modes of public transport, I confirm that bus services wholly within the LRT area will be ceded to the LRT operator. I can also confirm that Government intends to implement the proposals forwarded to you under Technical Notes 22 and 23 to ensure external bus services will not carry passengers for trips wholly within the LRT area. These proposals have been put to KMB, and are generally acceptable to KMB.
/As
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