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10: Receptacles in transit, including those to and from British and Foreign Men-of-War, numbered 209,157 as against 206,869 in 1934, an increase of 2,288.

11. Registered Articles and Parcels.-The number of registered articles handled amounted to 683,676 as compared with 680,360 in 1933 - an increase of 3,316.

12. The figures for insured letters were 14,580 and 16,316 respectively - a decrease of 1,736.

13. Parcels, ordinary and insured, which were dealt with reached a total of 149,929 as against 150,309 in 1934 - a decrease of 380.

14. The Railway may be said to have had a fairly successful year during 1935, bearing in mind the acute economic depression. Circumstances which have affected operating revenue considerably, are the economic instability engendered by the high price of silver, the complete failure of the fruit crop in Kwang Tung Province, and the existence through the entire period of a rate war among the Canton river steamers. The impoverished spending power of the public was a vital factor in reducing receipts.

15. The most noteworthy event of the year was the introduction of an agreement for the issue of through passenger tickets between Kowloon, and Sam Shui, Sai Nam and Fat Shan on the Canton-Sam Shui Railway. This was signed at Canton on August 30th, by the Administrations of the British and Chinese Sections of the Kowloon-Canton Railway, and the Southern Section of the Canton-Hankow Railway.

16. The track on both Sections has been maintained in a manner which has enabled all services to be run to the accelerated schedule during the year. The mid-day fast trains were speeded up, the journey between Kowloon and Canton being reduced from 3 hours 45 minutes to 3 hours 20 minutes.

17. The three 4-6-0 express locomotives obtained for the Chinese Section are still operated by the British Section. The Chinese Section made twelve monthly cash payments of $10,000 each in respect of these locomotives. Haulage charges continued to be paid by the Chinese Section.

18. The total steam train mileage run amounted to 500,887; this includes trains hauled by British Section locomotives over the Chinese Section. Motor Coach mileage was 8,123. Passenger journeys were 2,799,352 as against 2,683,444 in 1934.

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