CO129-414 - Governor Sir May - 1914 [10-11] — Page 497

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from the fact that the existing fares by through slow trains are less than the sum of the sectional fares, and that therefore under Article 25(5) their basis of division is open to discussion.

5.

Very early in the discussion of the question the Managing Director of the Chinese Section had offered to accept a division of fares by any through train (i.e. between Hongkong Sheklung and Canton) on the 35% - 65% basis, provided certain stations on the Chinese Section, from and to which large traffic is anticipated, were favourably treated, in the interests of the Chinese Section, in the division of joint sectional fares. The division proposed for these stations is a purely arbitrary one. Under it the British Section loses about 3,000 a year in the existing state of traffic.

On the other hand in consideration of this sacri-

fice the Chinese Section were prepared to make the following

concessions;-

-

(a). That Hongkong shall be understood to include Kowloon, Hunghom and Yaumati the stations situated south of the Beacon Hill Tunnel;

(b). that the five specially excepted stations on the

Chinese Section shall be Tu Tong, Sheung Ping, Wang Lik, Nam Shek

and Sai Wu;

(c). that all passenger fares, excess fares, excess charges

on luggage and parcels, carriages, horses, dogs, and country pro- duce from or to Hongkong and Sheklung and Canton by any descrip- tion of train shall be divided on the 35% - 65% basis;

(d). that passenger fares and exceas fares to and from Hong Kong to stations on the Chinese Section, other than Sheklung and Canton, and also those from stations north of Hongkong on the British Section to all stations on the Chinese Section, shall be considered to be joint sectional, and shall be divided according to a division table submitted in a letter from the Manager of the