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Kong until the beginning of March. It was found that the provisions of the agreement led to particularly smooth working. Minor modifications were made to the articles dealing with the division of transit rates when a precipitous decline in the value of Chinese National currency rendered such action desirable.
17. The Chinese Section of the line was bombed regularly by Japanese aircraft during the first 9 months of the year. Altogether, 1,490 bombs were dropped from 718 planes in 167 raids on 103 different days. The suspension of through traffic caused by these attacks aggregated 10 days, or 31% of the total period. Statistics kept since the first air raid took place on October 14th last year, disclose that the estimated damage per bomb amounted to $330 Chinese National currency, and that 83 per cent of the 2,216 bombs dropped did no harm to the Railway. The experience gained as the result of these raids confirms the opinions expressed by Dr. Ing. K. Remy, President of the Reichsbahndirektion Cologne, at the Fourth International Rail Congress held at Dusseldorf, Germany. Commenting on the great value of railways in defence, he said—"Railways, though possibly hampered in their operations, cannot be vitally wounded or finally eliminated by a series of destructive attacks."
18. Two locomotives and four goods wagons, owned by the British Section, were damaged during the air raids and subsequently repaired. It is believed that another wagon was practically destroyed, although the report has not been confirmed.
19. Operating efficiency deteriorated considerably due to the aerial attacks. Running costs were affected so adversely that a retrospective study carried back for the past three years would be more academic than useful. The amount of wasteful work such as "standing in steam", performed can be gauged from the large decline in train miles per engine hour which fell from 7.48 to 5.42.
20. Extensive improvements to Kowloon Station were undertaken to increase its capacity for handling both passengers and goods. Two platforms were lengthened from 600 to 900 feet, and the north side of the yard was remodelled.
21. A considerable amount of work was performed on behalf of various Chinese railways. Goods and reception sidings were installed, and rolling stock was repaired, the latter task being facilitated by the loan of machinery from the Canton-Hankow Railway.
22. The Railway Reclamation, Kowloon, continued to be used for the storage of cargo, receipts from this source totalling $164,189.36.
23. Prospects for the coming year are obscured by the anomalous conditions prevailing in South China. Even if operations are confined to British territory, it is highly probable that income will exceed expenditure by a small margin. When normality has been regained, however, it is confidently expected that the British Section will play an important part in the progressive development of the vast hinterland by providing a vital transportation link between the Chinese railway system to which it is connected, and deep sea shipping.
II. TRANSPORTATION.
1. Traffic.
24. The value of the results obtained during the year cannot accurately be gauged by comparison with previous figures, owing to the abnormal conditions created by the Sino-Japanese conflict which affected, to a marked extent, both through and local traffic receipts. Consequent on the blockade of Chinese ports by the Japanese, and the closing of the Yangtze last year, Hong Kong became the main entrepôt for foreign trade with China, and large quantities of cargo were conveyed via this Railway to and from the interior. Further stimulation was obtained through an increase in the Colony's resident population caused by an
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Kong until the beginning of March. It was found that the provisions of the agreement led to particularly smooth working. Minor modifications were made to the articles dealing with the division of transit rates when a precipitous decline in the value of Chinese National currency rendered such action desirable.
17. The Chinese Section of the line was bombed regularly by Japanese aircraft during the first 9 months of the year. Altogether, 1,490 bombs were dropped from 718 planes in 167 raids on 103 different days. The suspension of through traffic caused by these attacks aggregated 10 days, or 31% of the total period. Statistics kept since the first air raid took place on October 14th last year, disclose that the estimated damage per bomb amounted to $330 Chinese National currency, and that 83 per cent of the 2,216 bombs dropped did no harm to the Railway. The experience gained as the result of these raids confirms the opinions expressed by Dr. Ing. K. Remy, President of the Reichsbahndirektion Cologne, at the Fourth International Rail Congress held at Dusseldorf, Germany. Com- menting on the great value of railways in defence, he said-"Railways, though possibly hampered in their operations, cannot be vitally wounded or finally eliminated by a series of destructive attacks."'
18. Two locomotives and four goods wagons, owned by the British Section, were damaged during the air raids and subsequently repaired. It is believed that another wagon was practically destroyed, although the report has not been confirmed.
19. Operating efficiency deteriorated considerably due to the aerial attacks. Running costs were affected so adversely that a retrospective study carried back for the past three years would be more academic than useful. The amount of wasteful work such as "standing in steam", performed can be gauged from the large decline in train miles per engine hour which fell from 7.48 to 5.42.
20. Extensive improvements to Kowloon Station were undertaken to increase its capacity for handling both passengers and goods. Two platforms were lengthened from 600 to 900 feet, and the north side of the yard was remodelled.
21. A considerable amount of work was performed on behalf of various Chinese railways. Goods and reception sidings were installed, and rolling stock was repaired, the latter task being facilitated by the loan of machinery from the Canton-Hankow Railway.
22. The Railway Reclamation, Kowloon, continued to be used for the storage of cargo, receipts from this source totalling $164,189.36.
23. Prospects for the coming year are obscured by the anomalous conditions prevailing in South China. Even if operations are confined to British territory, it is highly probable that income will exceed expenditure by a small margin. When normality has been regained, however, it is confidently expected that the British Section will play an important part in the progressive development of the vast hinterland by providing a vital transportation link between the Chinese railway system to which it is connected, and deep sea shipping. )
II. TRANSPORTATION.
1. Traffic.
24. The value of the results obtained during the year cannot accurately be gauged by comparison with previous figures, (owing to the abnormal conditions created by the Sino-Japanese conflict which affected, to a marked extent, both through and local traffic receipts. Consequent on the blockade of Chinese ports by the Japanese, and the closing of the Yangtze last year, Hong Kong became the main entrepôt for foreign trade with. China, and large quantities of cargo were conveyed via this Railway to and from the interior. Further stimulation was obtained through an increase in the Colony's resident population caused by an
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