To Provide for Canton Trams and Waterworks Canton, Nov. 30, Details are now available of the two big contracts awarded to British firms by the Canton Municipality.
The contracts total approximately $5,450,000, of which $2,250,000 goes to Messrs. Malcolm && Ca, for the extension and Improvement of the Canton waterworks and distribution. system, and the remainder, $3,200,000, to the General Electric Company of China for Canton's new trolley-bus scheme.
Negotiations in connection with these contracts had been going. on with the previous administration for early two years, but it was not until after Mr. Tseng Yang-fu's assumption of office as mayor in August this Year that the schemes were seriously proceeded with.
In the contract awarded to the General Electric Company the Muniipality agree to purchase the whole of the electrical and mechanical plant required for the first section of the trolley bus scheme, including 64 bus chassis complete with all electrical equipment as well as compressed air braking equipment, over-head apparatus for 18% miles of double-track and for two car-sheds to hold 40 vehicles each, a number of sub-stations, 8% melee of underground feeder cable and other equipment.
Six "Years Credits The company has agreed to give the Municipality credit extending over-a period of six years, payments to consist of 24 equal qu: lid to include, instalment, interest at the rate of six per cent a year.
The trolley project is a part of the programme to improve the city's communications, which are at present in deplorable shape.
The contract awarded to Malcolm Ca, provides for the installation of a new waterworks. system, the oral cost of which will Be about £81,000, and of the loan to cover it, about 1,400,000 Hongkong dodliars.
The loan is for a period of six years and is to. be amortized "in monthly instalments, the interest on outstanding amounts being paid by the municipality at the rate of six per cent. a Year.
As security the municipality undertakes to set aside and hypothecate such portions of the total surplus Fevenue afler payment of maintenance charges only of both the old and the new waterworks as may be Fequired to meet the interest charge and the amortization.
Tt further undertakes to provide a guarantee from the Municipal. Bank to make good on demand any deficit that may arise should the revenue referred to be inadequate to service the loan.
'A Sinking Fund Committee of five members will be established—three to be appointed by the municipality and two by the company, whose duty and obligation will be to receive the surplus revenues from the waterworks and allocate them for the service of this loan—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.