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Memorandum.

(To accompany No. 3

200

February 8th-

1912.

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On November 7th., 1911, the Ministry of Communications telegraphed to the Governor of Hongkong requesting that the run- -ning of trains on the Canton-Kowloon Railway might be temporarily suspended from 1 p.m. on November 7th. to 1 p.m. on November 12th. in order to enable the line to be used for the transport of troops, the loss in earnings to be dealt with in accordance with

the Working Agreement.

His Excellency suspended the ordinary train service

in compliance with the request of the Ministry of Com.unications and on December 7th. His Majesty's Minister informed the latter

by letter of the action taken.

Sir John Jordan is now in receipt of a further com- -munication from the Governor of Hongkong to on the effect that,

es owing to the disturbance state of the districts through which the line runs, it was not possible to resume through traffic until

December 14th.

Article (vii) f. of the Working Agreement provides that compensation for suspension of traffic shall be paid by the Government requesting such suspension at a daily rateb f half the average gross receipts of the other section on through traffic.

The average gross receipts on through traffic of the British

Section for the month preceding November 7th. amounted to Eleven

thousand Four hundred and Sixty-two dollars (811,462) or Three

hundred and Seventy Dollars per diem (370) and in addition there

was a sum of some Twenty Dollars (820) per diem received as

compensation for late trains under Article 22 of the Working

Agreement, which being not a matter of profit but an actual

monetary loss should not be subjected to a reduction of one half,

consequently the amount due to the Government of Hongkong as

compensation for the suspension of traffic is 364 days (November

7th.

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