8
throughout the period but have averaged about 250% above those in force prior to the war, although in the case of terminal traffic, this has meant an increase of approximately 800%.
21. The same principles were applied to all goods rates and the average rates for all classes of traffic were approximately 900% above those in force when through traffic ceased in 1938. In addition a terminal charge of 20 cents per ton was levied on outward goods traffic from Kowloon, this charge being raised in order partially to off-set the reduction in the British Section share of through terminal traffic from 28% to 20% in July 1946.
22.
Considerable difficulties were experienced in adjusting rates and fares for down traffic as until November, the basis for all charges were those laid down by the Chinese Ministry of Communications in terms of Chinese Currency. Down rates and fares were quoted in the latter currency, while those in the reverse direction were quoted in terms of Hong Kong currency. However, from November 16th. and for so long as there is a marked difference between the Hong Kong dollar and National currency, the Chinese authorities agreed to the former currency being the basis for all rates and fares between the two sections, with a transaction rate based on the average of the previous 15 days market rate of exchange as quoted by the Bank of China in Hong Kong. This proved beneficial to both sections as previously owing to the continual and rapid decline in the value of Nationl currency, down rates and fares were frequently much less than those for up traffic, and the lack of a recognized formula for dealing with the situation often resulted in unnecessary loss in revenue being sustained.
OPERATING
23. During the Japanese occunation, quantities of rolling stock and equipment were removed from the Colony, and in addition, no maintenance or repairs were carried out to Railway Property. Signalling equipment and Token Instru- ments etc., were in many cases either looted or damaged, with the result that all operations since the re-occupation have been governed to a large extent by the speed with which new equipment and materials could be obtained, and repair and rehabilitation carried out to existing stock. Owing to the necessity of importing materials for Double Wire signalling from Great Britain, and the shortage of signal lamps, it has not been possible to restore the signalling equipment to its former state of efficiency, but numerous repairs and renewals have been carried out and new Token Instruments received from India have been installed. It is therefore difficult to