57
MEMORANDUM BY THE FAR EASTERN DEPARTMENT OF THE
COLONIAL OFFICE ON CERAIN FROFOSALS FUT FORMARD
BY THE GOVERNOR OF HONG KONG FOR ASSISTANCE FROM
THE COLONIAL DEVELO:MENT FUND.
The Governor puts forward three schemes
for immediate consideration:
(1) The purchase of engines for the Kowloon-
Canton Railway;
(2) The construction of a cross harbour water
pipe line;
(3) The development of the kerodrome.
(1) The purchase of engines for the
Kowloon-Canton Railway. The Kowloon-Canton Railway
is, in effect, a joint undertaking of the Hong Kong
Government and the Chinese authorities at Canton.
It is divided into a British and Chinese Section,
but there is through running over the whole line.
The new engines are required forhauling express
trains. As they are not required by the British
Section for its own purposes they are ultimately to
belong to the Chinese Section. The lattor, however, is unable to pay for them immediately, and the Hong Kong Government, has agreed to order and pay for
them on behalf of the Chinese Section and will retain
possession and operate them as locomotives of the
British Section until they are paid for by the
Chinese, in the meanwhile receiving from the Canton
Government interest at 6% on the purchase price.
In view of these terms it is felt that it would be
improper for a los without interest to be made to
the