CO129-545-5 Purchase of new passenger coaches for Kowloon Canton Railway 10-11-1933 - 31-1-1934 — Page 11

No. 563. (Air Mail)

Copy to:

Peking No. 23 Canton No. 52

GOVERNMENT HOUSE,

HONG KONG,

10th November, 1933.

Sir,

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I have the honour to inform you that the

Chinese Section of the Kowloon Canton Railway is anxious

to purchase immediately in the United Kingdom six new

passenger coaches, but being now, as always, without

sufficient funds to make payment of the cost, estimated

at $200,000 - $240,000, in one lump sum, has requested

this Government to advance the required amount and be

reimbursed by instalments with interest.

2.

This request is similar to that relating to

the purchase of three locomotives which formed the subject

of Sir Cecil Clementi's despatch No.413 of 25th September,

1929, and connected correspondence, and although it is

eminently desirable that the Chinese Section should be in

a position to provide its proper share of rolling stock,

our experiences in regard to repayments under the Locomotive

Agreement have been so unfortunate that I could not entertain

the present proposition on the same terms. Two modifications

have however been accepted by the Chinese Section which

alter the whole complexion of the case. In the first place they have agreed to a deduction of $10,000 monthly from the

credit balance of traffic receipts due from the British

Section. This balance averages at present about $12,000

per mensem and being in our hands is safe from diversion

THE RIGHT HONOURABLE

SIR P. CUNLIFFE-LISTER, G.B.E., M.C., M.P.,

&c.,

&C.,

&c.

until