CO129-551-4 Canton-Kowloon Railway Working Agreement 16-11-1934 - 5-12-1935 — Page 2

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Transport.

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signatures

Agreement

(2) Gw. 610

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copy

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7.1.35.

1558

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3.12.34.

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of the

(28) Agreement.

33735/34

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There seems little purpose in making

a detailed comparison between the provisions of

this agreement and the previous one, since the

new agreement has now been signed by both parties.

In his despatch No.613 of the 1st December

1930 ((1) in 82742) the Governor of Hong Kong

the

stated that he proposed to use/claims of the British

Section of the Canton-Kowloon Railway for payment

of the debt arising out of the suspension of

Through traffic at various times in the past as a

counter argument against pressure from the Chinese

side for a revised ratio for the division of

earnings. The then existing ratio of 65: 35 he

considered to be "by no means over-generous to

the British Section". In the present agreement

the Chinese Section has succeeded both in

revising the ratio intheir favour to 72: 28

and in securing cancellation of the debt. On the

whole, therefore, the Chinese seem not to have

done badly in the negotiations, though their

ratio is still below the mileage ratio of 80: 20.

Mr. Howell will no doubt say whether

there is any objection to retention of the signed

originals by the Hong Kong Government. I understand

in this connection that the Foreign Office Library

normally take the view that the originals of

international