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The Ministry of Communications hold to the provision of Article 7 of the Canton-Kowloon Joint Working Agreement that "When in circumstances of political emergency it is necessary either for the Hongkong Government or for the Chinese Government to suspend the running of through trains, due notice..
.shall be given
by the one Government to the other and compensation shall be paid by the Government requesting such suspension at a daily rate of half the average gross receipts of the other Section on through traffic as ascertained from the accounts for the corresponding month of the previous year, or failing that for the last preceding
month".
The demands of the Governor of Hongkong for losses of traffic receipts must of course be based on the limitations of the Agreement: now the Agreement lays down clearly that in regard to losses of traffic receipts compensation can only be paid when due notice has been given by the one Government to the other. The notice given in advance by this Ministry requested a suspension of traffic for five days only; naturally, according to the Agreement, compensation must be paid for five days.
(Admission of the liability for compensation for these five days has already been given above)
The original Hemorandum again quotes the comunication from the Governor of Hongkong to the effect that there was a sum of Twenty Dollars per dien as compensation for late trains under
Article 22 of the Agreement, consequently the amount due as
compensation for 36 days is Seven Hundred and thirty dollars.
The Ministry of Comunications hold to the provisions of Article 22 of the Agreement that "Each Section shall have a loco-
-motive waiting in readiness at Shan Chun station for taking the
through trains in accordance with the last preceding article. In
order to ensure punctuality each Section through whose fault delay
occurs shall forfeit to the other the sum of one dollar for each
minute after the first fifteen minutes that any through train
arrives late at Sham Chun station, unless such delay arises from causes beyond the reasonable control of the Section concerned.....
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