Sha Po (

2.

On the 17th December a third bridge (No. 66) near

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was blown up and further serious damage caused.

In this case two of the three 15-ft. steel spans were badly

damaged and the supporting pier so badly cracked that it will

require to be rebuilt.

3.

The claims to be made in accordance with Article

7 (f) of the Working Agreement of 8th September 1911, will,

on the stipulated scale of half the average gross receipts of

the British section for the corresponding month of the

previous year, probably work out at a minimum of about $660

per day during December and the total will of course depend

upon the duration of the stoppage.

4. I would further request that you should bring to

the notice of the Canton Government the fact that claims in

respect of suspension of traffio and demurrage up to the end

of 1928 and still outstanding, to the total amount of

3997,596.21, have been filed against the management of the

Chinese section of the Railway, with a further 311,438.16 for

the period between 1st January, 1929, and the present suspen-

sion of traffic on 13th December.

5.

Although olaime made under the Working Agreement

quoted above must be filed against the Railway authorities, I

would desire that you should emphasize the opinion of this

Government that the responsibility for such wanton aots of

destruction as are enumerated in my second paragraph above

must lie with the Canton Government, upon whom devolves the

duty of providing adequate protection for the permanent way

on the Chinese seotion.

I have the honour to be, Sir,

Your most obedient servant,

(SIGNED)

C. CLEMENTI.

Governor, &o.

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