otber, we are wondering whether – subject to the approval of the war office, the Hong Kong Qovernment and the Kowloon-Canton Railway authorities – we could not retaliate by proposing to the Chinese as sa equitable solution of those two issues tunt the agreed figure (when arrived at) of their claim for equipment requisitiored in Hong Kong should be sat off against the value of British rolling stock retained by the Cantorionisankow gailway. For example if (say) the agroed total of the Chinese claim on llie Majesty's Goverment were £500,000 and the value of the rolling stock retained by the caston-klaskow Railway £200,000, His Majesty's Government would pay the British section of the Kowloons-Canton Railway the latter sun and £100,000 to the Ministry of Communiomtions. verbess you would let us inve your views on this proposal after consulte- tion with the war vrfisst We should mention that, so far as our information goes, no line charges are being paid by the Canton-liankow Railway. These are reckoneč at H. X. 350 per day for passenger coaches and 50 ate. per ton capacity per day for wagons. These iteINE should therefore be iroluded in our aredit figure if our iden nests with general ap, Foval (in which consection this expedient might, of course, be leas attractive from our point of view if tue estimated value of the rolling stook in Chinose hands - from whieb however we know from bitter experience nothing can be easily prised - - is in excess of the amount due for the skoda looowotives ato.
You ever,
CHANCERY
2487
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