CO129-360 - Public Offices - 1909 — Page 725

[This Document is the Property of His Britannic Majesty's Governmen£20

VINO DO ESTAGEA

CHINA RAILWAYS.

CONFIDENTIAL.

[41499]

No. 1,

REC?

11287

[November 28 ! APR OC

SECTION 4.

Sir J. Jordan to Sir Edward Grey.--(Received November 28.)

(No. 456. Confidential.) Sir,

Peking, October 14, 1908. THE question of a joint working agreement for the British and Chinese sections of the Cauton-Kowloon Railway was touched upon in the correspondence inclosed in my despatch to you No. 389 of the 2nd September, 1908. I have now received from the Acting British Consul-General at Canton copy of a Confidential Memorandum which has been drawn up by Mr. W. Butler Wright, Chief Accountant of the Chinese section, and which appears to contain a clear statement of the subject. A copy of Mr. Fox's despatch inclosing this Memorandum is forwarded herewith for your information.

I have, &c. (Signed) J. N. JORDAN.

Inclosure 1 in No. 1.

(No. 50. Sir,

Acting Consul-General Fox to Sir J. Jordan,

Confidential.)

Canton, September 26, 1908. I HAVE the honour to inclose for your perusal copy of a Memorandum on the question of a joint working agreement for the British and Chinese sections of the Canton-Kowloon Railway which Mr. W. Butler Wright, Chief Accountant of the Chinese section, has been good enough to draw up for me.

I have forwarded copy of this Memorandum to the Governor of Hong Kong.

I have, &c.

(Signed) HARRY H. FOX.

Inclosure 2 in No. 1.

Memorandum respecting a Joint Working Agreement for the British and Chinese Sections of the Canton-Kowloon Railway. (Confidential.)

THE working agreements of connected railways must, of necessity, vary according to the diverse conditions which govern their junction at any particular point.

The nature of the country served, the length and character of the two lines, the geographical situation, the volume of business handled, both local and through, as well as cost of construction are obviously some of the factors which enter into consideration, in determining the appropriate method of joint working and the adjustment of the mutual interests involved.

The varient conditions of trade in different European countries and the yet greater divergence in America from European methods of railway working, illustrates how largely local pecularities influence junction arrangements.

In respect of connectel railways, each with its proper complement of supervising staff and its full equipment of rolling-stock, it is only necessary to agree upon a fair division of joint station expenses. If the junction station is built at the cost of one line, the other line pays interest on the capital outlay on such works as are used for joint purposes. In some cases the two railways agree to contribute equally to the capital cost of all such joint works. This method, however, raises the difficulty of joint ownership which it is better to avoid.

The division of joint working expenses in such cases is usually based upon the proportionate tonnage (passengers and goods) both local and though traffic. The

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