CO129-573-14 Kowloon-Canton railway- provision of a renewals fund 7-6-1938 - 11-10-1938 — Page 24

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debits against the reserve thus made

again a paper entry only the cost of

replacements.

The

-

Colony takes net revenue of Railway

before debiting depreciation, and pays

for actual replacements out of a special

expenditure sub head of Railway Vote.

The Railway, accumulated revenue deficit

to 31.12.36 was $7,930,870 so that it

cannot be said that Colony holds any free

Railway funds;

though, as interest is

the

not charged on this deficit, Railway

sets up a paper credit for interest on the

balance of the depreciation reserve a/c

against the paper debit for interest on

special expenditure.

Colouint

ment

3. The Governer now proposes to back

Λ

the paper Reserve by a fund of liquid

assets, and to increase the fund to a

total adequate to cover the expired life

of all the wasting assets.

This is a

mos t