COMMUNICATIONS
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operating under a franchise from the Hong Kong Government. In addition to the internal service the Telephone Company, in conjunction with Cable and Wireless Limited, provides service to the majority or countries in the world as well as to ships moored in the harbour and ships at sea.
The Telephone Company's system, which is fully automatic, comprises some 126,000 stations served from eight major ex- changes and a number of satellite exchanges.
Four additional major units are planned for the immediate future, two on Hong Kong Island and two in Kowloon, to provide an initial increase of 40,000 lines. Expansion of satellite exchanges in the rural areas is also under way.
In addition to the provision of new major units, two existing exchanges are being replaced by new exchanges of considerably increased capacity. One, to replace the existing Waterloo Road Exchange, is already under construction. The other will replace the existing Central Exchange and will be housed in the new multi-storey car park building at Murray Parade Ground, due for completion in 1962.
The cost of a telephone service to subscribers in Hong Kong is probably the lowest in the world. Rentals are charged on a flat rate' basis at $300 per annum and $225 per annum for business and residential lines respectively. No charge is made for individual calls except from and to the New Territories.
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ROYAL OBSERVATORY
The Royal Observatory was established in 1883 to make mete- orological and magnetic observations and to provide a time service for the Colony and shipping. Today the Observatory is engaged in a much wider range of geophysical activities, although magnetic observations were discontinued in 1939.
Meteorological Services. The Observatory is the source of all meteorological information in the Colony, and a Central Forecast Office provides weather forecasts and information for the public, Government departments, shipping, aviation and the Armed Forces. Routine surface observations of the meteorological elements are made throughout the twenty four hours at the Royal Observatory, the airport, and at Waglan and Cheung Chau Islands, the last