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Objects and Reasons.

1. The purpose of this measure is to give the Govern- ment wider control over the telegraphic and telephonic services of the Colony than is secured by the Telegraphic Messages Ordinance. 1894, the Telephone Ordinances, 1925 and 1930, and the Wireless Telegraphy Ordinance, 1926. The Secretary of State in his despatches of the 24th March, 1934, and 24th July, 1935, has agreed to the introduction of a measure to secure this aim and to bring up to date the law of the Colony on the subject.

2. The present Bill follows very closely the lines of Federated Malay States Enactment No. 6 of 1933, which itself is closely parallel with Straits Settlements Ordinance No. 55 as amended by subsequent enactments, in particular the Straits Settlements Telegraphs Amendment Ordinance, 1932. It has been revised after consideration of various suggestions made in a memorandum of the General Post Office transmitted with the Secretary of State's despatch of the 24th July, 1935.

3. The main effect of the Bill is to make telegraphic and telephonic services in the Colony a Government monopoly while preserving at the same time the concession of the Hong- kong Telephone Company Limited, the position of which is governed by the Telephone Ordinances, 1925 and 1930.

4. Clause 3 gives the Governor in Council the exclusive privilege of working, etc., telegraphs and the power to license fit persons to do the same. Sub-clause (2) will enable licences to be granted to the Cable Companies or to the persons in charge of them.

Clause 4 empowers the Governor in time of emergency to take possession of licensed telegraphs, to withdraw from the public the use of telephone exchanges and trunk lines, and to order interception of messages.

Clause 5 empowers the Governor, when necessary in the public interest, to require the production of all telegraphic messages, and imposes penalties for refusal to produce.

Clause 6, which reproduces most of the provisions of the Telegraphic Messages Ordinance, 1894, protects certain telegraphic messages from publication within a certain period.

Clause 7 empowers the Governor in Council to make regulations governing telegraphs generally.

Clause 8 allows the revocation of licences for good cause.

Clause 9 exempts the Government from liability from loss or damage caused by the loss or delay of a telegraphic message.

5. Part III (Clauses 10-14) defines the powers and duties of the Director of Public Works and of licensed persons in connection with the placing and maintaining of telegraphs.

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