its own local fares, while the rates for through traffic between Kowloon and Canton were divided in the proportion of 28 per cent to the British Section and 72 per cent to the Chinese Section. At the present time, pending the conclusion of a new agreement, the British Section is receiving a share of 20 per cent of the receipts and a terminal charge of 20 cents per ton on all traffic originating at Kowloon.
Through traffic between the Colony and China has been heavy throughout the year and the number of passengers carried was 96 per cent greater than in 1946. This is partly to be attributed to the large and steady growth in the population of both Canton and Hong Kong since the end of the war and partly also to the improvement in the train service. Altogether, 1,900,640 through passengers were carried during the year. Local passenger traffic also increased though not to the same extent. The increase, amounting to 58%, was due to an improvement in the train service resulting from the arrival of locomotives from Great Britain and also to the repairs and rehabilitation on rolling stock and the gradual repopulation of the New Territories. Considerable competition had been felt by the railway from lorries which, relying upon the lack of any bus service on the eastern side of the New Territories, used to carry passengers in addition to their normal load of goods on the journey from the border to Kowloon. To eliminate this competition, a bus service was inaugurated on 7th October, the fares being, by agreement, the same as those charged by the railway. This service has already had the effect of practically eliminating the numerous lorries operating on this route and has resulted in increased railway traffic, while the Government has also received royalties from the bus company for passengers carried.
There was a decrease in through goods traffic by comparison with 1946 as the following figures illustrate:
Up Down Total
1947
123,548 tons 4,212 tons
1946 151,934 tons 36,045 tons 187,9801 tons 127,760 tons
The decrease was in part due to the diversion to river transport of quantities of U.N.R.R.A. supplies and railway materials required for the Canton-Hankow Railway and other Chinese railways in the interior. Other factors were the decrease of imports of commercial goods into China from Hong Kong caused by the restrictions imposed by the Chinese Government and the continuous decline in the value of Chinese currency throughout the year. Hopes that the link established in July 1946 with the Canton-Hankow Railway would result in a steadily increasing volume of goods traffic between the Colony and the interior of China did not materialise. Local goods traffic was very small and consisted mainly of small consign- ments of farm produce. The reason may be that under the marketing schemes operated by Government, vegetables and fish are now conveyed to market in Government motor vehicles.
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