§ Mr. Thorntonasked the Secretary of State for the Colonies whether the Government of Hong Kong have decided to implement the main recommendation of the Electricity Supply Companies Commission to nationalise the Hong Kong Electric Company Limited, and the China Light and Power Company Limited; and what advice or instruction he has given to the Governor in connection therewith.
§ Mr. Iain MacleodThe Colonial Secretary, Hong Kong, announced in the Legislative Council on 23rd March that, following the publication of the Commission's Report, the two electricity supply companies made an informal approach to the Hong Kong Government. With Government consent they are now exploring all possibilities to find a formula which might cover most of the recommendations of the Commission short of nationalisation, the aim being to ensure that Government is given the maximum degree of control consistent with retention by the companies of incentives to efficiency and expansion.
The Hong Kong Government have indicated that any such formula must be presented against a background of the ultimate amalgamation of the two companies and integration of their generating capacity. I have given the Governor no advice or instruction.