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Enclosure 2
500
Mr. Winslow and I met Mr. Chao Ching-mua and Mr. Hali
in the Colonial Secretary's Office today. It was agreed that (a) originally the joint sectional fares had been the sum of the two sectional fares; (b) that, in order to remove the anomaly which resulted in some cases from merely adding the two sectional fares as they stood and thus producing a total fare between two inter- mediate stations exceeding the through express fare over a longer distance, the Administrations of the two sections had agreed upon a reduction in such joint sectional fares to bring them down to a figure not exceeding the through express fare: (c) that it was reasonable that such reduction should be borne proportionately by each section, e.g. if a joint sectional fare of $1.00 (50 cents British plus 50 cents Chinese) was for the above reasons reduced to 80.50, then each section should bear half the loss, i.e. the fare on each section would be 25 cents: (d) that, however, as at present, the British section bears the whole cost of the ferry service, there should in the case of reduced joint sectional fares be a division of the ferry charges in the same proportion as the reduction in the sectionalfares, e.g. in the above example of ↑ and ✦ division, the ferry charge being 2 cents, each section would pay
1 cent towards it: therefore the division would be 26 cents British and 24 centa Chinese, the British section settling with the Ferry Co. as heretofore.
It was decided that Mr. Winslow and Mr. Chao Ching-hua should draw up and sign a table of division of joint sectional fares upon these lines.
sd.
C. Clementi
Sd.
H. P. Winslow
17th May,
1912.
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