CO129-376 - Governor Sir Lugard - 1911 [3-4] — Page 563

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Sir,

V.

C O

17433

ོ227དཱ་

30th. March, 1911.

In reply to your letter of the 3rd. March, I

note that the first of the principles has already been settled.

As regards the second principle dealing with the provision of rolling stock, I note your consent to go further into details so that there may be no confusion or mis- -understanding in practice. Your view is perfectly correct: Our object is merely to secure an easy system under which the Rail- -way officials may be able to act without difficulty. I beg

therefore to be furnished with further details.

With regard to the third principle respecting

the equitable division of rates, I find that the ordinary rate to be charged on your section for 3rd. class slow train is 45 cents. The rates for through traffic should not exceed the ordinary

rates.

You say, that the rates should be reduced in order to compete with the steamers and to attract passengers. The rates should therefore be settled according to net profit on the capital cost of construction.

According to our reduced rates the charge

on through traffic for 3rd. class from Canton to Shamchun is 90 cents or 1 cent per mile. In proportion to this charge, your rate for 3rd. class from Shamchun to Kowloon should not be more than *for the whole 25 cents to 30 cents per mile. (This should be distance over the British Section").

I enclose our calculation of the proposed

rates, in English, for your consideration with a view to making

a reduction. Will you be good enough to let me know a reply

in due course.

Chao Ching-hua,

Mamaging Director,

Impl. Chinese Section of the

K.-C. Rly.

1st. day of 3rd.

moon (30.3.11.)