CO129-573-14 Kowloon-Canton railway- provision of a renewals fund 7-6-1938 - 11-10-1938 — Page 26

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in 1935 and recalculated the renewals

provision.

lives

F.M.S. lines might be near

enough for the small H.K. Railway and

it is suggested that, Gov. might

approach the F.M.S. Gov. for details of lives

lines and present replacement costs, or

alternatively be supplied with a

schedule showing original cost and date

of acquisition to Crown Agents with a

request for the above details.

5. As regards the method of financing

the proposed fund and the arrears, the

normal method would be to appropriate

the whole Railway surplus to the fund

until the arrears had been made good,

and afterwards to charge against Railway

revenues the annual contribution

calculated as above (in H.K. the amount

of the existing reserve would have to be

the

provided from Colony's surplus in

addition). The fund is then held in

cash