CO129-388 - Governor Sir Lugard - 1912 [1-2] — Page 107

6

105

rate on the Chinese Section being converted into Hongkong legal tender at a rate to be ascertained from time to time as hereinafter provided.

(3.) In the joint-sectional fares and rates schedules for use on the Chinese Section each of the fares and rates shall be stated in Chinese currency and shall be the sum of the sectional fare or rate on the Chinese Section and the sectional fare or rate on the British Section, the sectional fare or rate on the British Section being converted into Chinese currency at a rate to be ascertained from to time as hereinafter provided.

(4.) The rate referred to in sub-clauses (2) and (3) of this Article shall until the 30th of June, 191, be the mean difference in exchange between Hongkong legal tender and Chinese currency during the six months preceding the 15th of September, 1911, and thereafter shall be the mean difference in exchange between Hongkong legal tender and Chinese currency for the previous calendar half-year. A new rate shall, if necessitated by fluctuations in exchange, come into effect on the 1st of August and the 1st of February of each year.

(5.) Whatever balance is found to be due by one Section to the other on each month's working shall be paid in the form of a cheque payable in Hongkong legal tender. Any necessary conversions from Hongkong legal tender into Chinese currency shall be made at the rate at which the collection

was inade.

(6.) Whenever it can be shown that a loss has been incurred by either Section owing to the acceptance of subsidiary coins on account of through bookings, such loss shall be borne by each Section in the proportion of the amounts due from through bookings to each Section.

(7.) This Article may be modified at any time by agreement between the Administrations of the two Sections.

Maintenance.

33. Each Section agrees to maintain the road and works under its charge in such a state of efficiency as will ensure the safety and rapid conveyance of passengers and goods traffic.

General.

34. Except as in this agreement provided, neither Section shall interfere in any way with the

management or control of the other.

35. In confirmation of Article 15 of the final schedule hereto, the Directorate and the Governor undertake on behalf of their respective Governments that no part of either Section nor the control thereof shall at any time be transferred to persons of any other nationality except Chinese or British respectively.

36. In confirmation of Article 15 of the Gual schedule hereto, the Directorate and the Governor undertake on behalf of their respective Governments that no line competing with either the British or Chinese Section shall be built to the detriment of either Section and that no branch line or extension shall be built which could divert traffic to the detriment of either Section, without the consent of both Governments.

37. The collection of Customs Duties on dutiable articles received by either Section and destined for points in the territory of the Government of the other Section shall be governed by the Rules contained in Schedule D hereto attached.

38. When the Chinese Governinent constructs a line from Canton to Hankow and connects it by a loop-line with the Railway in accordance with its declared intention, rules for the interchange of traffic and rolling stock and for through bookings and through rates shall be settled by the Adminis- trations of the British and Chinese Sections of the Kowloon-Canton Railway with the Administration of the Canton-Hankow Railway, and the British Section of the former Railway shall be a party to any agreement made for through traffic from the latter Railway to the port of Hongkong and rice versâ.

Police.

39. Each Government shall provide such Railway Police as may be necessary and enforcing the law in and upon the promises of, and in connection with the business of, its own for preserving order Section. In the event of any disturbance affecting the traffic of the Railway the Government on whose Section the disturbance occurs shall be responsible for all loss (including loss of mails) incurred by the other Government, and for any claims by individuals on account of hurt or damage to person or prop- erty, and for damage to Rolling Stock belonging to the other Section.