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$330,000 to be eventually recovered by the Hong Kong Government when the locomotives will
be handed over to the Provincial Government of
Kwangtung. In the meantime they will remain the property of the Hong Kong Government and be used in hauling the through express trains over both
Sections of the Railway on the terms of the
Agreement.
4. (ii). The Chinese Section of the Railway
does not possess sufficient coaching stock for the
needs of present traffic; and, as this is steadily
increasing, it becomes necessary for that Section to
provide more coaches, particularly 3rd class
coaches, for it is considered by both Sections that
an additional fast train per day in each direction
should be run as soon as possible. This cannot
be done until the coaching stock of both Sections is augmented; for, although the British Section
possesses more passenger coaches than does the
Chinese Section and proposes to make considerable
additions in 1930, there are seasons at which the
whole of the British Section stock is required; and,
while at other times British Section stock is hired
to the Chinese Section, it is not considered
justifiable that this Goverment should lay out an
undue amount of capital on coaching stock for the purpose of hiring to the Chinese Section on
irregular occasins, although both Sections
benefit by the additional traffic carried.
F. (iii). Sleepers. Owing to lack of funds the Chinese Section of late years economised
in sleeper renewals to an extent which rendered
its