CO129-520-6 Railway development- Canton-Kowloon Railway 5-11-1929 - 5-11-1930 — Page 173

COFT.

Observations on Document referred to in His

Excellency's minute of 7.9.29.

185

1.

Ky first impression is naturally, that much energy has

bean displayed in searching for problematic and extraneous traf-

fie, when by the simple procedure of making the "loop line" the

legitimate additional traffic, both passenger and goods, would

naturally result. Passenger and goods destined eventually for

points on the Yuet Han Railway and vice versa, would, once on

rails, remain on rails, and be naturally diverted from the river

without any trouble or rate war. It is however obvious that the

rehabilitation of the Chinese Section requires prior attention,

and for this purpose money must be found.

2.

The document is most interesting, but it contains eer-

tain inaccuracies, some of which would appear to be vital to the

success of the scheme.

3.

On page 10, it is apparently estimated that practically

the whole of the river passenger traffic can be captured, and as

many as 2,000 through passengers in addition, besides extra reveR-

ue from road feeders of $1,000. On this purely imaginary increase

of daily revenue, from $4,500 as at the present time (page 3) to

38,000, and on the assumption that operating expenses will be re-

duced to below the actual figure for 1928 (page 3) and not in-

creased at all, an annual net revenue of $1,370,000 is arrived at,

which is just about the sum required for the service of the loans

(page 12).

4.

Paraş 23 page 3. "1929 The improvement continued till May's suspension but immediately after the revenue regained pre- vious level." This is not so, revenue has not recovered yet.

The normal number of through express passengers per day this year up to the date of suspension in May averaged 3,100 to 3,200, which was a great improvement on last year's figures.

Since/