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takings of the through traffic are divided

between the Chinese and British sections.

This ratio takes account of the much heavier

capital cost per mile of the British section,

due to its more difficult terrain on the lines

of the home practice under the Railway Clearing House Regulation No.45 and on that basis is by no means over-generous to the British section.

Nevertheless it has been the subject of constant

complaints from the management of the Chinese

section, who press for a division of receipts on

a mileage basis, or at least something

approximating to that basis, the actual mileage

being 89 to 22.

2. The claims for demurrage in 1923/25

cover the periods of suspension of through traffic

and are connected with those suspensions.

But

there were periods of suspension when the whole

line was nevertheless under one control and the

British rolling stock could have been returned to the British section in safety. Moreover it was

ascertained from time to time during the suspensions that British wagons were actually

being used by the Chinese management on various

parts of their section and the depreciation

arising from this use as well as from neglect of

maintenance during their detention, has fallen on

the British section. As however the Chinese

section lacks even the funds necessary to maintain

its

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