ہے
Copyto CA 2
No. 465.
3
73
mil
Sir,
150
/29
GOVERNMENT HOUSE,
HỒNG KÔNG,
7th June, 1938.
I have the honour to inform you that the
question of the provision of a Renewals Fund for the
Kowloon-Canton Railway has been raised by the Acting
Manager of the Railway.
2.
The position is that the Railway started
to work on open line account in 1910 and book provision
has been made annually for depreciation of rolling stock
at the following approved rates:-
4% so long as the depreciation reserve does not
exceed 20% of cost.
3% when depreciation reserve exceeds 20% and does
not exceed 30%.
2% when depreciation reserve exceeds 30% and does
not exceed 40%.
1% when depreciation reserve exceeds 40%.
These rates are those applicable to the Chinese Railways
Administration and have been followed in the British
section of the Kowloon-Canton Railway in order to keep
the accounts uniform with those of the Chinese section.
The calculation of depreciation is based on the original
cost, and with these rates it will take 73 years to
write off the cost of the asset, a period which is more
than
THE RIGHT HONOURABLE
MALCOLM MACDONALD, M.P.,
&C.,
&C.
&C.,
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