CO129-376 - Governor Sir Lugard - 1911 [3-4] — Page 569

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His Honour

Mr. Chao Ching-hua,

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556

Colonial Secretary's Office, Hongkong, 25th. April, 1911.

Managing Director of the Imperial Chinese

Section of the Kowloon-Canton Railway,

Canton.

000,00,20X

da6,000

300,000. JIR.

TEI,ATI

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Dear Mr. Chao,

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I beg to acknowledge the receipt of your letter of the 30th. ultimo asking for further details with re- -gard to the principles suggested for the provision of Rolling Stock and enclosing a memorandum by yourself on the subject of division of fares. It will, I think, save both of us much time and trouble if, before a detailed scheme for provision of Roll- -ing Stock is elaborated, we hold another meeting in order to discuss the matter and to settle the principles upon which the scheme should be based. If you concur in this suggestion, I shall await your proposals as to the day, hour and place at which the meeting can most conveniently be held.

2.

Turning now to your memorandum on division of fares, which Mr. Lindsey and I have studied with great interest, I venture to observe in the first place that your calculations proceed from the hypothesis that the receipts from traffic on the British and Chinese Sections of the Kowloon-Canton Railway will be equal. But how can the receipts from through traffic be equal, when to get from Canton to Hongkong and vice versa a passenger must travel four times as far on the Chinese Section as on the British ? And again, how can the working expenses be the same? In the next place, we are of opinion that the working expenses will be considerably less than 70 per centum of the

gross

ross takings of the Railway, we cannot accept so low a figure as

£9,020,000