CO129-516-4 Canton-Kowloon Railway- use of money from the 'Boxer Indemnity' 21-2-1929 - 6-8-1929 — Page 18

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situation in China resulting in there being no chance

of securing reparation. Chinese authorities might

bewilling to accept an allocation from the Boxer Funds

I

on this account if earmarked for purchasing of

additional locomotives and rolling stock which would

then be hired to the Chinese section by the British

section. Agreement proposed in my secret telegram of

15th September 1928 has not yet been concluded and if the British Section were enabled by the present

proposal to purchase and own these engines the

traffic would be so improved that it would pay to

hire them to the Chinese section at a rate based as

at present upon the running cost and depreciation charging

nothing for interest. As the engines would be

owned and maintained by the British section their life

would be prolonged.