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PROPOSALS PUT FORWARD BY THE GOVERNOR OF HONG KONG
FOR ASSISTANCE FROM THE COLONIAL DEVELOPMENT FUND.
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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 Aerodrome.
(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.
coby to the Ait Mimsly) The new engines are required for hauling 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 latter, 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 theneanwhile 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 loan without interest to be made to
the Hong Kong Government, which would then be making
a profit on the transaction, ignoring, of course
the risk of financial loss if the Chinese Authorities
ultimately