(1890), Wt, 20024-26, 6000, 11/08, A, & E, W,
(8327),
,, 1081-7. 6000. 4/00,
++
No.
157.
Jongkong.
My Lord,
291
C.O. 22597
REC
0
7 JUL 09
Government House,
Hongkong, 4th June, 1909.
My predecessor ruled that the
interest on current advances to the Railway Construction
Account should be debited to the ordinary Expenditure of the
year and stated his views in his Despatch No. 169 of 23rd
June, 1906. So far as I am aware it is the usual custom
to charge interest on Loan for construction to Construction
Account pending the opening of each section of a Railway
when it is charged to "Open Line Account" for that section.
This is the custom in India, and this procedure was follow-
ed in the case of the Uganda Railway and I am under the
impression that it was also done by the Lagos Railway though
I am unable here to verify the fact.
2.
I have the honour to submit to
Your Lordship that this procedure is financially sound,
and that the opposite course does not disclose the real
cost of constructing a line. It is the course which would
be
HE RIGHT HONOURABLE
THE EARL OF CREWE,
&c.
&c.
&c.