CO129-573-14 Kowloon-Canton railway- provision of a renewals fund 7-6-1938 - 11-10-1938 — Page 21

Dear Cowell,

3

20

4, MILLBANK,

WESTMINSTER,

LONDON, S. W. 1.

7730)

ABBEY

25th August 1938.

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We are sending you an official reply to your letter

No. 53932/38 of the 12th August about a renewals fund for

the Kowloon-Canton Railway. The official letter contains the

usual particulars about such renewals fund and supports the

proposal to establish one. You might, however, derive some

additional information from a study of the Kenya and Uganda

renewals fund file. In the early part of 1937 somebody or

other wrote to the Colonial Office giving particulars of the

renewals contribution made in all sorts of railways both at

home and abroad, and some of the figures are quite interesting

and might be helpful.

There is one thing as to which I am not quite sure and

that is the method in which the renewals contribution is

+ calculated, i.e. by dividing the cost by the estimated life.

If, for instance, a thing costing £100 has a life of 50 years,

the renewals contribution on that formula would be £2 per annum,

but supposing a renewal was not required till the end of 50

H.R. Cowell Esq.,

C.M.G.

years/