CO129-530-4 Development of Canton to Kowloon railway 1-12-1930 - 1-12-1930 — Page 21

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efficiency of the Chinese section, that some

modification of the mileage method allowing for

special works could be considered, but that the

first step was with the Chinese section.

10. ir. Liu stated that the Ministry of

Railways were proposing to allot £50,000 for the use

of the Canton-Kowloon line.

11.

ir. Hsieh asked a number of questions such

as he had asked before and attempted to get replies

He

to the kind of proportionate re-division His Excellency

would be prepared to consider on revision.

further asked that if Hong Kong pressed so hard for the re-habilitation of the line, would Hong Kong put

re-habilitation before the service of the Railway Loan?

To that His Excellency replied that the Railway Loan

seemed to have little hope unless the line was

re-habilitated and the Conference ended by a final question

from fr. Hsieh as to the precise degree of re-habilitation

which would be required for Hong Kong to accept revision of the Working Agreement.

12.

His Excellency again replied that it was for China to take the first step, that business was

business, that Hong Kong was sympathetic and that he

was prepared to revise when the time came, but that

there could be no revision under the present circumstances.

(Sd). D.R. Hallifax.

Colonial Secretary.

10th February, 1931.