ex-

Train services were augmented during 1947; at the beginning of the year ten local passenger trains were running daily and 4 through fast trains to and from Canton as well as 2 through slow trains and an average of 2 goods trains daily. While the number of through slow and goods trains remained approxi- mately the same throughout the year, local trains were increased by 2 daily and the number of through fast trains to and from Canton was increased to 6. Considerable difficulty was perienced in the operation of goods trains. Deterioration in the condition of the wheels on U.N.R.R.A. wagons and the lack of proper wagon maintenance on the part of the Chinese Section led to a progressive decline in their efficiency and running. To combat this tendency, it was necessary to introduce a strict system of examination of all rolling stock at the border before it could be permitted to run over the British Section. As an additional safety precaution, the speed of all goods trains was reduced to 20 miles per hour over the British Section from the 6th November.

Negotiations, which have been in progress over a period of two years, achieved fruition when the British Section secured recognition of its ownership of three locomotives, 1 65 ton breakdown crane, 14 machines, 27 coaches and 62 wagons, which had been moved to the interior during the Japanese occupation and were in the possession of the Canton-Hankow Railway. A certain amount of this equipment has already been returned, some has been sold and some will require repairs to enable it to make the journey to Hong Kong.

The total revenue for the period January-December, 1947, amounted to $5,900,920 while the expenditure for the same period was $2,217,564. A considerable contribution to the revenue was made by the collection of excess fares which amounted to $103,415. Two ticket inspectors and two booking clerks were continuously engaged in checking tickets on trains to keep to a minimum the number of passengers travelling without pay- ment of fares. The main cause of the trouble was the lack of control in Chinese territory which resulted in numerous passen- gers on the down trains entering British territory without tickets. Many of these were professional smugglers engaged in regular smuggling between Hong Kong and China. The checking of tickets at stations was also improved. A major item of expenditure during 1947 was the sum of $339,122.94 cts. on repairs to British Section rolling stock. Much more could have been done in this direction had the section been able to recover earlier the property which was held by the Canton-Hankow railway.

Roads.

In

The building and maintenance of roads in Hong Kong are subject to unusual topographical and climatic difficulties. most parts of the Colony the construction of a roadway, by virtue of the hilly nature of the country, involves considerable blasting operations. On the other hand the rock is not difficult

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