ENG-1966 — Page 268

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COMMUNICATIONS

that the profits of the company should be kept within a narrow range. Over a period of years shortfalls on this profit margin and excess over it would be debited and credited to a fares equalization account. The committee further recommended that the fare for first-class passengers should be increased from 20 cents to 25 cents but that the second-class fare should remain unchanged. The scheme of control was subsequently agreed by the company and the Governor in Council, and the latter authorized the increase in fares, but with certain concessions to students and monthly ticket holders, with effect from 1st May 1966. This was the first increase in Hong Kong's public transport fares in the 20 years since the Second World War and it met with considerable public opposition. After the first-class fare had been raised a large number of pas- sengers transferred to second-class. The scheme of control provides for an annual review of the operations of the company and the first such review will take place early in 1967.

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CROSS-HARBOUR TUNNEL

A resolution approving in principle the grant of a franchise to the Victoria City Development Company, to construct and operate a tunnel across the harbour between Wan Chai and Hung Hom, was approved in principle by the Legislative Council in 1965, subject to certain conditions, one of which was that the tunnel had to be completed by 1970. With the approval of the govern- ment, the company assigned all its rights and obligations to the Cross-Harbour Tunnel Company on 17th May 1966. During the year, a firm of engineering consultants was employed by the government to design the road and flyover networks associated with the tunnel approaches at each end of the tunnel, and a bill to make provision relating to the grant of the franchise to construct and operate the tunnel was drafted. In November the Cross Harbour Tunnel Company issued tender documents for the construction of the tunnel to contractors with the necessary experience.

POSTAL SERVICES

The development of postal services continued in 1966 with postings to all destinations of more than 130 million postal articles, representing an increase of more than 5 per cent over postings for