1949-1950 — Page 3

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6. From October 1949, till the end of March 1950, com- munication with the Provincial Authorities in Canton as well as the Railway Authorities there was maintained through a liaison officer who travelled to and fro. It was due entirely to his activities that an amicable exchange of rolling stock took place on December 12th 1949. That belonging to the British Section consisted of one second class, three third class coaches and a third class converted from a wagon. Second class coach No. 202 and third class No. 311 were damaged, and the cost of repairs was duly acknowledged and paid.

7. The passenger figures over this short line of 36 kilo- metres is an all-time record being 5,264,366 against 3,878,906 for the previous year. Of this total 1,812,181 were purely local bookings and they again exceed the figure 884,251 for the previous year. Military personnel were carried at concession rates which worked out at just over a half-penny per mile.

8. In the early part of the year inflation in the National currency was such that down fares from Canton had to be paid for in silver dollars. The rate of exchange initially was 8 to 8 silver dollars to the Hong Kong dollar, but later it fell away to $3.15.

9. In June, with the commencement of an increase in the garrison, various problems presented themselves in dealing with military vehicles of different types. Low priority work at out- stations, such as lowering loading platforms due to the change of coupler height and the widening of 40-ton flat cars to carry special vehicles had to be given urgent attention. Damage was also sustained to railway property and tracks put out of align- ment. Recovery of the charges was a major operation.

The railway workshop staff performed excellent work in loading and unloading this special equipment at stations, military technical staff not always being available.

10. Railway land totalling 472,978 sq. ft. was requisitioned by the Military Authorities up to August 1949. In certain cases it was necessary to give permittees, who were paying 4 cents per sq. ft. per month, notice to quit. The outstanding charges for the year amount to $174,990.46.

11. The devaluation of the pound sterling had an imme- diate effect on the price of furnace fuel oil in the local market. Excellent results had been obtained on six of the Austerity 2-8-0