CO129-518-8 Colonial Development Fund- requests and recommendations for monetary assistance for various projects 30-8-1929 - 28-2-1930 — Page 57

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MEMORANDUM BY THE FAR EASTERN DEPARTMENT OF THE

COLONIAL OFFICE ON CERAIN FROFOSALS FUT FORMARD

BY THE GOVERNOR OF HONG KONG FOR ASSISTANCE FROM

THE COLONIAL DEVELO:MENT FUND.

The Governor puts forward three schemes

for immediate consideration:

(1) The purchase of engines for the Kowloon-

Canton Railway;

(2) The construction of a cross harbour water

pipe line;

(3) The development of the kerodrome.

(1) The purchase of engines for the

Kowloon-Canton Railway. The Kowloon-Canton Railway

is, in effect, a joint undertaking of the Hong Kong

Government and the Chinese authorities at Canton.

It is divided into a British and Chinese Section,

but there is through running over the whole line.

The new engines are required forhauling express

trains. As they are not required by the British

Section for its own purposes they are ultimately to

belong to the Chinese Section. The lattor, however, is unable to pay for them immediately, and the Hong Kong Government, has agreed to order and pay for

them on behalf of the Chinese Section and will retain

possession and operate them as locomotives of the

British Section until they are paid for by the

Chinese, in the meanwhile receiving from the Canton

Government interest at 6% on the purchase price.

In view of these terms it is felt that it would be

improper for a los without interest to be made to

the