CO129-573-14 Kowloon-Canton railway- provision of a renewals fund 7-6-1938 - 11-10-1938 — Page 8

7

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though comes the Zusch sections not liable for this

ཀ

to the Chasse

Sechm of the Railway

stock belonging to the British section must be

dependent on the operating conditions in the

Chinese section. From time to time in the past

the Chinese section has been helped out by

financial assistance for track improvements

or the provision of new locomotives and rolling

stock by the British section, in order that the

whole concern maybe kept going on a satisfactory

basis.

The second point is the one to which

Mr. Walker refers, viz. the Defence Contribution

complication, and I agree with his observations

on that point.

It seems hardly open to question that

it is desirable for some Renewals Fund to be

created in a more concrete form than exists at

present, and if, as one may reasonably expect,

the heaviest and the most urgent expenditure

for renewals will be in the Chinese section,

which has been subjected to sustained attacks

by Japanese aircraft for the last six or eight

months and will probably be more severely

attacked in the months to come, the real

financial problem connected with the Hong Kong

railway will be the provision of such financial

assistance, as

ance is possible to which the Colony

in its own interests will no doubt need to

contribute.

Mr. Walker's suggestion, therefore,

that the proposed Renewals Fund should take the

form of an earmarked portion of the Colony's

surplus rather than a fund in the railway

accounts, would be more suitable as a source

from which the financial assistance to the Chinese

section could be advanced to such minimum extent

as

Page

Page

as may be necessary to restore the railway to a

satisfactory condition.

As regards the Governor's request in the

last paragraph, I think it would be better to refer

8

to the Crown Agents rather than to suggest a reference

to the F.M. S. raway. In regard to the latter

railway, the whole problem is to come up for

consideration in 1940.

I would therefore suggest that a copy of

No.1 should be sent to the Crown Agents, together

with a note prepared in this Department approximately

reproducing Mr. Walker's minute, and we should ask

for the Crown Agents' observations in general, and for

their advice in particular on the questions raised by

the Governor in the last paragraph of his despatch.

R. Gant.

27-7

Lumsdell

29/7/35

Ofte asey po común

which

MR Cowell

Rowell

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DEST!

TOCA (1/21+ memo). Cons

TROYED UNDER STATUTE

12-8:38

3. P. N. (J. 2. v. glood)

25.8.38.

Ref 2, additional information might be derived from Kenya & Uganda Reneval files. 4. b. 8. 2/E.261/14

2.5.8.38.

Ref 2 attaches statement 13 from Annual Report of Nigerian Rly for financial year ended 31/12/24

This has bee held up while search was bemy made to the the referred to by his blood in (3).

which can be traced are

The only one

thoone

the 1934 Kenya file attached below.

23029/34

Kenya. There

undmed

meuch inf

think

present furfore

the issue

there but I

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that for the

am

it would simplify

& be sufficient

upon the C.A. litter.

to

to rely

? ack. (1) may that the S.MY! affone, the Gau's perforal generally To setting of of a Renewal Fund for the Canta - Howtom Ry. refly & facets of the despatch, enclone for conson copa 17(2) and, a57410.

Kowloa

Copy despatch my o C.A

by short letter thankry them to the

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