1.
Colonial Decretary,
28965
395 REED
REG 19 SEP IC
The basis of a Working Agreement other than on the lines
laid down in the draft put forward by the doverment of Hong-
kong must be an Agreement as to fares and rates to deal with
through traffic. It is to the interest of both parties that
the traffic now water borne should be attracted to the Hall-
way-
ihis becomes impossible unless the two sections agree
on such fares and rates as dan meet competition.
2.
In the case of Passengers there is no great difficulty
in doing this, but in a division of the total fare charged
it must be conceded by the Chinese bection that the British
share per mile should be more or less double the rate per
mile of the Chinese Section so that the division would re-
main as provided in ülsuse 18 and 19 of the working agreement
put forward by us.
In other
„rgeable should be the sum of the rates on either side to
Junotion station, provided however that if any reduction
́s be made because such « charge is abnormally large and
her cases where there is no competition the rate
to prevent the growth of traffic the reduction on
'r Section shoulɑ be made in proportion to the actual
-er of miles of either section provided trut the Chinese
jas originally quoted be not higher than 75 per cent
of
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