CO129-505-12 Estimates of expenditure 1928 1-9-1927 - 12-1-1928 — Page 98

· 23.

matters stand they must wait until we have cleared off our

commitments or until our revenue increases.

Head 32 - Kowloon-Canton Railway.

At first sight there appears to be a considerable

increase on this head. Actually it is not so. The extra

cost in staff, coal, repairs, etc., resulting from our

locomotives running through to Canton is over $97,000. This

is all to be recovered from the Chinese Section, so that

the apparent increase of $70,000 on this had is converted

into a decrease of $27,000. The prosent arrangement whereby our locomotives run through to Canton is working very satisfactorily. It is very gratifying to see the two sections of this railway co-operating so harmoniously to the mutual benefit of both. It is to be hoped that this spirit of

mutual help will extend to other activities. As a result

of the resumption of through-traffic, receipts have gone up.

Apart from the increases just referred to there are no alterations of importance under either Personal Emoluments

or Other Charges.

It is necessary to replace certain of the workshop machines, such as the electric welding plant, and pneumatic hammers and drills which are worn out. A sum of $9,500 has

accordingly been inserted under Special Expenditure. It is proposed to keep the Fanling-Shata uk ok branch running until the end of 1928 by which time it is hoped the future prospects

of the district may be more clear. For this purpose a sum of

$9,000 is inserted for special repairs.

The future of the

line will depend on the state of affairs in the adjacent portion of Kuang-tung in 1928, and if it is to be continued permanently a heavy outlay will be necessary in 1929. The

position will be reviewed next year.

Head

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