157
been calculated.
(2) Demurrage of wagons.
This is based on Article 7(d) of
schedule C of Agreement which reads as follows "for detention of every wagon over the above mentioned hours a charge of $3 for each four-wheeled and 85 for each eight-wheeled shall be paid for each day or part of each day in excess of the above-mentioned hours".
Amounts claimed are as follows 1923 £24,430 1924 $22,869 1925 89,089 totalling 756,388 Claims for demurrage since 1915 have been settled regularly amounts being small.
Claim up to October 1923 was presented to the Managing Chinese Section by the Manager of the British Section on December 13th 1923. Manager of Chinese section repudiated liability which he placed with the Provincial Government. Since that date no further
claim has been presented owing to the continual fluctuations of authority in Canton and the constant lack of funds of the Chinese section but (?record) has been kept of indebtedness. A full report is contained in my despatch No.253 of 17th May copy of which is being sent to H.M.Minister. No communication on the matter made
appears to have been made to you previously doubtless owing to the instability of the situation in China resulting in there being no chence of securing reparation. Chinese authorities might be willing to accept en allocation from the Boxer Funds on this account if earmarked for purchasing of additional locomotives and rolling stock which would then be hired to the Chinese section by the British section. Agreement proposed in my secret telegram of 15th September 1928 has not yet been concluded and if the British Section were enabled by the present proposal to purchase and own these engined the traffic would be so improved that it would pay to hire them to the Chinese section at a rate based as at present upon the running cost and depreciation charging nothing for interest Asthe enquiry engines would be owned and maintained by the British section their life would be prolonged.