+

-2-

36

to the Kitson locomotives which were agreed at £1,514 each, including conversion and spares; allowing £400 each for conversion and spares the value of the locos would be £1,114 each, that, £3,342 for the 3.

t

The second item not included is understood to have been carried out in Railway Workshops, when 4 North British and

1 Baldwin locomotives, the property of the Chinese Government, were converted to Middle East standards and subsequently prepared for shipment. A figure of £300 each locomotive would be an appropriate amount for this work, making a total of’£1,500.

*

The total claim by the Kowloon-Canton Railway Section, would, therefore, be as follows :-

4 locos and 5 wagons

.£9,432

(b) Preparing 149 wagons for shipment... 13,410 (c) Preparing wagon material for

3 tank locos

shipment... 28,650

Converting and preparing 5 locos for

3,342

shipment... 1,500

British

£56.334

>

We are prepared to recommend settlement at the figure of £56,334, and perhaps you would be good enough to inform the Hong Kong Government of the position.

J

The War Supplies claim includes two elements, firstly, freight charges, and secondly, commission on the tonnage shipped

British Section, from two sources, (a) the Kowloon-Canton Railway and (b) the Chinese. As the exact figure of the Chinese claim has not yet been settled, and for that matter the Kowloon-Canton. Railway British Section's claim is still in the same position, it is not possible to suggest a figure in full and final settlement of the War Supplies Board claim. If, however, there is any urgency in the matter we are prepared to recommend an interim

/settlement

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