CO129-374 - Public Offices & Others - 1910 — Page 259

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16, Great George Street,

Westminster, S.W.

1st October, 1910.

Sir,

In accordance with your instructions, I have

considered the questions you put to me and the draft Agree-

ment you left as fully and carefully as possible in the short

time at my disposal, and beg to submit my Report.

The problem for solution is to determine what is the

best method of operating a line of Railway about 115 miles

in length which is physically continuous, but in its course

crosses the boundary separating two countries, the ownership

of the Railway dividing at the Frontier. The problem is

simplified by the fact that the through traffic passing over

both Railways is expected to be by far the most lucrative

source of revenue, but is complicated by the fact that the

Hong Kong Railway, though shorter in actual length, is from

the nature of the country traversed far more costly per mile,

and also more important as serving a terminal Port.

It is quite clear that no satisfactory commercial

results can be anticipated unless the Railways are worked in

complete harmony as far as through traffic isconcerned, and

from a practical railway point of view, there are only three

methods of achieving this result.

(1) For the two Governments to work their own Railways,

but to enter into an Agreement to facilitate the inter-change

of through traffic,

(2)

Mutual running powers,

(3)

Joint Working.

I have no hesitation in advising you that from the

general features of the present case, and especially having

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