Chapter 467 Star Ferry Incident
Chapter 467 Star Ferry Incident
April soon came, and the recovery trend of Hong Kong's real estate market became increasingly obvious. House prices in many places had risen by more than 4%, and many real estate companies and scalpers began to become busy.
However, another thing happened: the fare of Hong Kong's Star Ferry is going to increase.
The process of things is very simple. As the only shipping company that monopolizes Hong Kong Island and Kowloon Peninsula, the Star Ferry controls the ships that carry millions of people back and forth in Hong Kong, similar to the China Motor Bus in Hong Kong Island and the Kowloon Motor Bus in Kowloon.
However, on land, even if you think the bus is expensive, you can still walk, or even take a rickshaw in some remote places. Or if you think the bus service is too poor, you can take a taxi if you have money. In short, there are still some ways; but it doesn’t work on the water. Apart from taking a boat, you can’t swim across, right?
And most importantly, many people work in Hong Kong Island and live in Kowloon, or a small number of people go back and forth by boat every day. This can be said to be one of the necessary expenses in life, similar to water and electricity.
In October 1965, the Star Ferry Company applied to the Hong Kong government to increase the first-class fare by 10 cents (5 cents), from 5 to 2 cents, while the second-class fare remained unchanged at 2 cent. However, it was immediately opposed by the whole society. In the following month, more than 5 people signed a joint letter of opposition, which caused the matter to be temporarily suspended.
Last month, in March 1966, the Hong Kong government's Transport Advisory Committee, which is responsible for reviewing public transportation fares, held a meeting to discuss the Star Ferry fare issue. Only one committee member named Ye opposed the proposal, while all other committee members agreed and approved the Star Ferry's fare increase application. One of the committee members even declared that the price increase would only apply to first-class seats, and if you think it is expensive, you can continue to sit in second-class seats which have not been increased.
Then it triggered the SL and BD in Kowloon, and the traffic and business in many places were greatly affected. This was actually the beginning of the rise of Chinese capital. It was precisely because of these resistances that British capital dared not suppress Chinese capital at will.
On April 4, Yang Wendong was discussing Singapore real estate with Zheng Zhijie when the phone suddenly rang. He answered it immediately: “Hello.”
After a while, Yang Wendong hung up the phone and said, "The Governor's Office asked me to come over to discuss the Star Ferry issue."
"Star Ferry? This has nothing to do with us, right?" Zheng Zhijie asked in confusion.
Yang Wendong said: "We are not the only ones who went. I guess they want to ask someone with some status among the Chinese to negotiate the recent chaos. I am also a Justice of the Peace. With this identity, I have some responsibilities.
Regardless of whether or not you can do anything, you should at least participate, otherwise it would be a bit unreasonable. "
Justices of the Peace gave many Chinese people convenient identities. The British granted such rights in order to win them over, but also in the hope that the Chinese who were granted the identities would be able to maintain peace and tranquility in the colony.
If it was a few decades ago, Justices of the Peace would have had great actual power, but now they are just a symbol of status, and the corresponding responsibilities have naturally decreased, but there is still some power.
Zheng Zhijie also nodded and said, "That's right. In the past, at times like this, the Hong Kong government also relied on Chinese representatives to handle these matters first."
"What Yihe did is now in chaos, and now they only know to ask us to clean up the mess." Yang Wendong said without caring: "Let's go and take a look first. Old Zheng, you should come with me. There is something I want to push forward, and it has something to do with you."
"What's the matter?" Zheng Zhijie asked.
Yang Wendong said: "The fundamental reason for the Star Ferry's problems this time is still monopoly. It would be better if competition was introduced. We are unlikely to obtain another ferry company license. But if the undersea tunnel or bridge between Kowloon Peninsula and Hong Kong Island is opened, the Star Ferry will no longer be eligible to raise fares."
Zheng Zhijie also understood: "Mr. Yang wants to take over this project?"
Yang Wendong nodded and said, "Yes, this project can be said to be one of the lifeblood of Hong Kong's economy. If we take it down, according to my prediction of Hong Kong's future economy, it will definitely be a worthwhile investment."
Zheng Zhijie also agreed: "That's true, but the Hong Kong government has not yet decided whether to build a bridge or a tunnel, nor where to build it. These will probably take a lot of time.
And once the project is finalized, I'm afraid a lot of capital from the UK will participate, and the competition will be fierce."
Yang Wendong said: "Yes, I know, but you can still try."
Originally, the Hung Hom Cross-Harbour Tunnel was not built until a year and a half after the end of the economic crisis. By that time, the competition was very fierce.
If it could be pushed forward a little, such as bidding for the qualification in 67, the Hong Kong government might still be thinking of taking the money and running away, which would have been perfect.
The next day, Yang Wendong brought Zheng Zhijie to the Governor's House. After exchanging greetings with several senior executives, they went to a conference room.
There were three parties sitting here at the moment, namely Hong Kong government officials, British representatives and Chinese representatives. Ho Sin-hang, Pao Yu-kong and others had also come, and Yang Wendong nodded to them.
Governor Trench spoke first, saying, "Ladies and gentlemen, the biggest problem in Hong Kong right now is the chaos caused by the Star Ferry fare increase. Many people are on strike, traffic is blocked, and some are even taking the opportunity to rob. This has posed a great threat to Hong Kong's peace. So I invited you all here today to ask for your opinions on how we can resolve this issue peacefully."
Everyone was silent after hearing this. No one wanted to be the first to take action at a time like this. Yang Wendong was the same. He didn't want to get involved in such matters purely to save face for his position as Justice of the Peace and the Governor of Hong Kong.
However, one person said, "Governor, this incident was caused by the Star Ferry fare increase. Some people may have taken the opportunity to cause trouble, but the core demand of most people is to reduce the ferry fare. As long as the price is reduced, everything will naturally return to normal. As for those who are taking advantage of the opportunity to break the law, let the police arrest them."
Yang Wendong also saw this person. He knew that the lady was called Ye Xien, and she was the only committee member who opposed the fare increase at the previous Star Ferry hearing.
John Keswick, a representative of Jardine Matheson Group, said: "No, the Star Ferry price has not increased for five years. In the past five years, the price of goods in Hong Kong has increased a lot, and the average salary of many people has doubled. Why can't our public utilities increase their prices?"
Representatives of other British companies also supported John Keswick's remarks one by one.
The Star Ferry belongs to the Wharf Group and naturally also to the Jardine Matheson Group. In fact, it is just a small industry under the Jardine Matheson Group. But in today's situation, it absolutely cannot give in.
If the Star Ferry lowers its fare today because of protests by the Chinese, then won't all the industries that are controlled by British capital and monopolize people's livelihood, such as communications, electricity, gas, finance, etc., never be able to raise prices again?
Ye Xien asked with a smile: "Mr. Keswick means that the Star Ferry is now operating at a loss?"
John Keswick frowned, thinking that the woman's question seemed to have some problems, but he could only admit: "Yes, the Star Ferry lost 110 million Hong Kong dollars last year. The Hong Kong government has already audited it. If you don't believe it, you can also entrust a third party to audit it again."
Since a price increase is being requested, preparation for a financial audit is also necessary. Even if it is British capital, the Hong Kong government will only help when appropriate and will not completely ignore other factors. Therefore, the most basic requirements must be met. If a monopoly enterprise requests a price increase, it must be "reasonable."
Others don't care. The audit is probably true, and there is no fraud in this regard. However, it is too easy to make the company lose money legally. The same is true in reverse. For example, Hong Kong Jianing in the 80s and a large group in 2022 are very profitable.
Ye Xien said: "Since the Hong Kong government has already audited it, I naturally believe it. However, I think there is no need for Jardine Matheson to continue operating such a loss-making business. It is better to give up. I think other companies are interested in taking over the Star Ferry, and they can also guarantee profits without raising prices."
John Keswick was stunned after hearing this, and then said with an unpleasant expression: "Ms. Ye, your logic does not conform to the rules of the commercial market."
Yang Wendong was also stunned after hearing this. This Ye Xien was really "reckless", but it was normal when you think about it. After she died in her previous life, three Hong Kong governors carried her coffin, and a well-known central media in the mainland even called her a "true public servant."
It is because she has always been considerate of the Chinese citizens of Hong Kong in many things, constantly exposing cases of corruption among police and officials, and even went to London to find the British government and media to expose the darkness in Hong Kong, forcing the Hong Kong government to do something. Even the launch of the Independent Commission Against Corruption in the future also has her contribution.
Ye Xien said: "Public utilities are for serving the citizens of Hong Kong, not a tool for the consortium to make money. If you think it is not profitable, and other consortiums can guarantee profits without raising prices, then you should hand over this public utility to others.
Mr. Governor, since the Star Ferry has caused Jardine Matheson to suffer losses and Jardine Matheson insists on raising fares, it would be better for the Hong Kong government to take it back and hand it over to other companies, or let the Hong Kong government operate it exclusively like the water company, which is also the current solution to the problem. "
Seeing the ball being kicked to him, Trench hurriedly said, "Ms. Ye, the Hong Kong government has always advocated the principle of freedom. The reason they took over the tap water business is that water affects the lives and safety of citizens. The Hong Kong government will not take over other businesses.
As for whether other companies will accept the Star Ferry, it should be a matter for Jardine Matheson and other consortiums to negotiate internally, and the Hong Kong government will not get involved. As long as both parties agree, I will not have any problem on my side."
The ball was kicked out again, and Trench breathed a sigh of relief. Although he was the head of the Hong Kong government, he really had no way to deal with the troublemaker Ye Xien. This Chinese female councillor was so troublesome that British officials and the media knew her, and the officials of the Hong Kong Governor's Office were afraid of her.
At this time, Guo Linshan, a representative of the Guo family of Wing On, said with a smile: "If the Jardine Matheson Group feels that the Star Ferry is suffering from serious losses, why not sell it to me, Wing On? I can promise not to raise the price."
After listening to this, Yang Wendong also glanced at Guo Linshan. In fact, he was also somewhat tempted, but his future target was Hutchison Whampoa, so it was not appropriate to take action against the Star Ferry now. However, the Guo family's statement actually confirmed that by the late 60s, Chinese capital would no longer be like before and would not dare to have any ideas about British assets. As long as they did not challenge the bottom line of the British Hong Kong government, it would be fine.
John Keswick shook his head and said, "No need, the Star Ferry is not considered for sale."
Ye Xien said: "Others can make profits without raising prices, why can't Jardine Matheson? Is it because your company's management ability is not good enough?"
John Keswick was speechless and his answers were all wrong. Seeing that this was not going to work, Trembling glanced at Yang Wendong who was slacking off and asked, "Mr. Yang, what do you think about this?"
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(End of this chapter)