CO129-573-14 Kowloon-Canton railway- provision of a renewals fund 7-6-1938 - 11-10-1938 — Page 28

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(b) If the fund were held by the

Railway both interest earned and

profit on investments would be gross

receipts of the Railway and therefore

assessed.

While the fund is part,

in effect, of the Colony's balance

the profit is not assessed.

7. There is also the point of

uniformity with the Chinese Bection.

If

it is desired to preserve this uniformity

in the Railway accounts themselves the

proposed renewals fund could on this

ground also be held in preference in the

Colony's hands and not in the Railway

accounts.

the afore

that will about prints to fout to the for posing

It is suggested/that the fund

8

might be set up simply as an earmarked

part of the Colony's surplus under the

following procedure: An annual

contribution to the fund to be provided

under a separate sub-division of the

Railway