(of acceptance of the Contract for the six coaches

by the Kwang Tung Provincial Government) or (b) (of

the placing of the order for the six coaches by the

Crown Agents.) (preferably (a) ).

7.

In the event of the monthly provisional

balance due from the British to the Chinese Section

not being sufficient to cover the instalment due for

any month, the Chinese Section of the Railway shall

immediately remit to the British Section their cheque

for the balance due on the instalment for that month,

while should the balance due to the Chinese Section

for any

month be more than sufficient to cover the

monthly instalment due to the British Section on

account of the Loan, the excess balance (less the usual

retention of between One and Two Thousand Dollars) shall

be immediately remitted to the Chinese Section as is

customary.

8.

This account shall be known as "the Six

Coaches Loan Account", and the account shall be kept

by the Hong Kong Government in accordance, both as to

debits and credits, with the practice of Bankers. The

daily rate of interest on the outstanding balance

shall be six per cent with monthly rests.

9.

The account shall be kept in Hong Kong

currency, all sterling debits being converted at the

Hong Kong and Shanghai Bank demand rates of exchange

as and when paid on sterling account and repayments

shall be made in Hong Kong current bank notes or an

equivalent as accepted by the Hong Kong and Shanghai

Bank.

10.

The Kwang Tung Provincial Government shall

be at liberty to make its own arrangements for delivery

of the six coaches at the Port of Hong Kong.

8

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9

11.

In the event of delivery being taken by the

Hong Kong Government, any and all expenses incurred

in accepting delivery, landing, wharfage, and godown

charges, shall be subject to an additional charge of

5% on account of overheads which shall be added to the

cost of the Six Coaches. But the Hong Kong Government

shall be exempted from all liability in the event of

damage or loss from any cause whatsoever to, shortage

or overcarriage of any of the cargo.

12.

In the event of the Hong Kong Government

being requested to undertake other services in connection

with the Six Coaches such as erection should the coaches

arrive in sections, all expenses incurred in connection

therewith shall be subject to an additional charge of

50% on account of the cost of labour (stores at cost

price) which shall be added to the total cost. But the

Hong Kong Government shall be exempted from any liability

in the event of breakage, damage or loss from any cause

not attributable to its own or its servants' negligence

while on the premises of the Hong Kong Government prior to delivery in Chinese Territory (or at Shum Chun Station).

13.

In the event of no Tender being accepted by

the Kwang Tung Provincial Government or this Agreement

being cancelled or modified, all expenses incurred by

the Hong Kong Government in connection with calling for

Tenders for the Six Coaches shall be refunded by the

Kwang Tung Provincial Government to the Hong Kong

Government, and the total amount shall be a first charge

on the balances due from the British to the Chinese "ec-

tion of the Railway on division of Through Earnings.

age 9

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CROWN

AGENTS

FOR THE

ALL COMMUNICATIONS

TO BE ADDRESSED TO THE

CROWN AGENTS FOR THE COLONIES,

THE FOLLOWING REFERENCE AND THE

DATE OF THIS LETTER BEING QUOTED.

Z/Hong Kong Rly.606.

TELEGRAMS: "CROWN LONDON'.

TELEPHONE: VICTORIA 7730.

COLONIES

REQER

Sir,

5-

10

ge 10

4, MILLBANK,

LONDON, S.W.1.

30th January, 1934.

[n=4]

I have the honour to acknowledge the receipt of your

letter No.13867/33 of the 7th December transmitting copy of

a despatch and of a telegram from the Governor of Hong Kong

regarding the purchase of six new passenger coaches for the

Chinese section of the Kowloon Canton Railway.

We have now received tenders from four firms for the

carriages required, and we have today despatched a telegram

to the Colonial Secretary, Hong Kong reading as follows:-

"With reference to despatch of 10th November No.563 from Governor to Secretary of State carriages cost f.o.b. two second class £5,500 four third class £9,880 freight and other charges approximately £1770 total. Delivery six months."

We consider the prices quoted are favourable and we now await

definite instructions before taking further action.

I have the honour to be,

фот

Page

8

The Under Secretary of State,

COLONIAL OFFICE.

Sir,

Your obedient Servant,

Mausi.

for Crown Agents.

CA

ge 10Page 11

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