CO129-520-6 Railway development- Canton-Kowloon Railway 5-11-1929 - 5-11-1930 — Page 59

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Certain facts and features obvious to the Hong Kong Government may not be so obvious, or even readily apparent to persons not fully acquainted with the facts and circumstances.

As the names imply there are two Sections, one British and one Chinese. Both benefit under the agreement by being worked for certain purposes as one line. Trains pass on the Sections as indicated in the interpretation of "through trains" set out above, but there are other trains which, while operating within their respective Sections, connect as regards traffic at Sham Chun, a station within the Chinese Section near the junction of the two Sections. Accommodation at Sham Chun station is granted to and paid for by the British Section, and it is there that passenger and goods traffic other than that handled by the "through trains" is interchanged

The Chinese Government has not, in the years during which the Agreement has continuously subsisted, raised any question as to the ratification or non-ratification of the Agreement worked upon, nor has either Government asked for or thus far recognised any suspension of such agreement as contemplated in and by Article 38 ( or (32), nor has there been any closing of books and accounts with separate and entirely independent operation as referred to in such Article.

There have been long periods of suspension of "through trains" and the ong Kong Government has applied Article 7 (f) to such periods although consideration and disposal of the claims has been standing over, to quote the Manager of the Chinese Section in his letter of 23rd July, 1929, to the Manager of the British Section, "until such time that the

Government is able to meet the liability'

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it will be seen that Article 38( or 32) deals with

complete suspension of inter-working, and consequential

independent