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the rates would be so low that the Chinese Section's
share would not pay them for supplying rolling stock and
hauling a full train, whereas the British Section's share
might just give them a little profit. The Chinese Sec-
tion will not agree to haul trains at a loss for the bene-
fib of the British Section, so there is little likeli-
hood of competitive rates or of the development of through
traffic while the British Section maintain their present
attitude.
*It should he noted however that no proposal for
severe competitive rates has been made by the British
Section.
"All proposals for the development of through
traffic and general working of the line have been taken
up readily by the Chinese Section and amity prevails.
The responsibility for making competitive rates impos-
sible ( and only by low competitive rates can you induce a
flow
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