1956-1957 — Page 5

GENERAL SURVEY

THE year has been one of unusual incidents. Almost at the commencement, on April 27th, 1956 there occurred a serious explosion of the boiler in locomotive No. 22 causing the tragic deaths of six members of the staff scalded by live steam. There were unfortunately no mechanical histories of any of these "austerity" locomotives when supplied at the end of the war and other boilers when dismantled had given no reason for alarm. Only after the accident, when two boilers were delivered to a local dockyard for repair, did a detailed examination dis- close faults which necessitated complete reconstruction of the two boilers concerned, and the withdrawal from service of 6 locomotives.

2. Negotiations for a through train service with Canton which had opened in the previous November, carried on until August when they were broken off.

It was found impossible to reach agreement on immigration control into Hong Kong. There was however complete accord on railway matters and the British Section have repeatedly made it clear that negotiation could be resumed at any time if fresh proposals are forthcoming for resolving the immigration difficulties.

3. During the course of the negotiations for a through service of trains between Kowloon and Canton, the British Section pointed out that it was less optimistic that a regular flow of passengers between the two cities would result unless the Chinese Government were prepared to sanction a return, although perhaps in a modified form, of the travelling-traders' activities which formed the raison d'etre for the continuous going and coming between the two cities in former years. Not- withstanding re-introduction of the quota system on September 3rd, 1956 this is in effect what has taken place in respect of travellers with Hong Kong re-entry permits.

4. While the year's revenue is the highest since the financial year 1950/51 at $7,915,938.79, still better results would have been attained but for the serious riots which broke out in the

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