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locomotives with the use of a jet arrangement which combined the best of American and British experience. Furthermore, the use of fuel oil proved much cleaner for passengers than coal in this humid climate, particularly when the coal now obtainable seldom has an ash content of less than 14%. However, it was observed that the oil fuel economy was not so marked on the short local runs when compared with through running over the 183 kilometres to Canton, and so coal burning has been reverted to, except when the oil burning locomotives have to be brought into service for extra traffic requirements.
12. Incidental revenue has declined due to the fact that less coal and fuel oil was supplied to Chinese engines which bunkered at Kowloon in connection with through running. Similarly under an arrangement with the Chinese Customs the railway received a proportion of the receipts derived from goods con- fiscated by the Customs on railway premises. This has stopped with the cessation of the through expresses.
13. Other Goods Services show an increase of $84,780.19 over last year. This increase consisted of revenue received against a tender for handling goods which produced $84,000 for the year.
14. With the introduction of through goods trains from the interior, and more particularly with Shanghai, it was realized that the terminal facilities afforded such as shunting and placing were disproportionate to the length of the main line. It was decided, therefore, to introduce a terminal charge for services rendered at Kowloon on such traffic with effect from 23rd February 1950. The sum of $2,957.20 represents the revenue derived up to the close of the year.
15. For some three months prior to the close of the finan- cial year there was a marked increase of down passengers, that is to say-entrants into the Colony-over up. For the first two weeks of March, the excess number of persons entering the Colony by train over those leaving reached 10,350 and 13,410 respectively.
16. During the three-monthly period following the change of administration in Canton a total of 898,355 passengers had to be dealt with at the border halt at Lowu, and it became obvious that steps must be taken to enclose this area in order to exercise effective control. Special authority was, therefore, sought to purchase the necessary gates and fencing, and essen- tial works were completed in three weeks.