{
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57
of the Board of Control will be Chinese, the General
Manager will be British, the representation of Chinese
and British interests will be equal, and any matter upon
which the votes of the Board are evenly divided will be
submitted to the two Governments for decision. The
functions of the Board are limited to administering the
Code of Procedure and any larger matter, lying outside
the operation of the Code will be similarly referred to
the two Governments.
+
The second point which may require
some elucidation is the division of profits, dealt with in
articles 17 24. The principle underlying these provisions
is that, as the construction of the British Section of the
Railway has been more costly than the construction of the
Chinese Section, the British Section should be allowed to
charge a rate per mile exceeding the rate per mile charged
on the Chinese Section by the same proportion as the
average cost of construction per mile of the British
Section exceeds the average cost of construction per mile
of the Chinese Section. Thus assuming that the cost of
construction per mile of the British Section has been
twice as great as the cost of construction per mile of
the Chinese Section, then the rates charged on the
British