TNAG-1457-FCO40-1981-Relations-between-Hong-Kong-and-China-1986 — Page 170

CENDENTA

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question; did the Hong Kong charge not already operate, being included in the fare? I said I thought not; the

fare money went to the Company as opposed to Hong Kong Treasury.

2.

un the way back I was able to clarify the position

with a member of the KCR staff. I understand that there

is indeed a strong differential in the fares, depending on whether the traveller goes beyond Sheung Shui or not. The cost of rail travel to N.T. inhabitants is infact

subsidised for social reasons. The cost for travellers

proceeding to China relates to the true cost of international

travel. The differential is not a border charge as such,

nor does it go to Government as opposed to (Government owned)

company revenue.

3.

We shall need to report at the next CRC. Meanwhile you may wish to circulate this record for the information of interested parties.

4.

Points to note are that we have put the Chinese

clearly on record about our general intentions, even though

I did not refer specifically to other border crossing points;

that they are under a misapprehension about the function of the

rail fare differential; but that this may be a useful

misapprehension in that we can probably get away quite easily

with including a government charge in the fare (preferring

as we do in any case to see this levied by the travel operator).

لي

(J.D.I. Boyd) Political Adviser

49. 29.1.86

CONFIDENTIAL