110
(c) During the past five years Cable Companies have been faced with steadily increasing competition from wireless. Generally speaking, it is far cheaper to operate and maintain a wireless than a cable station, and though communication by this method is open to many objections, especially in times of war, it has made serious inroads into one source of the Cable Companies' revenue.
(d) Finally, we were informed by Mr. Carter that no hopes could be held out for any reduction in rates until such times as a revival of world prosperity had led to a general increase in cable business or until the gradual centralisation under unified control of all the scattered systems of Empire communication had eliminated intra Empire competition.
7. Questioned as to the reason why a cable from Hong Kong to London should cost more than a cable from London to Hong Kong, Mr. Carter explained that the gold franc rate was the same for both outward and inward cables. Owing, how- ever, to the fact that the United Kingdom had gone off the Gold standard the sterling equivalent of the gold franc rate should in fact be considerably higher than it was at present. So far as London was concerned, the Cable Company was endeavouring as far as possible to maintain the volume of trade by leaving their sterling charges unchanged and were themselves carrying the loss occasioned by the depreciation of sterling in terms of gold. There was, however, no possibility that this policy would be extended to embrace other portions of the Empire.
8. While, from this evidence, it would appear that Hong Kong is not worse off than its neighbours, we must emphasise that in our opinion this Colony is entitled to individual consideration, and a general reduction in the cost of cable communi- cation may well help a revival of trade, or at least decrease the burden on a com- merce which is in distress. In this connection it must be remembered that the burden of cable charges is in inverse proportion to the magnitude of business transacted.
9. We would point out also that whereas during the past few years of depres- sion there has been a world wide reduction in prices of basic commodities; cable rates in this Colony have remained unaltered since 1929. We consider that it should be a matter for careful investigation by the Cable Company whether their present policy does not stand in need of drastic revision, for, in our opinion, there is a strong possibility that a continuation of the present high scale of charges will result in a permanent loss to the Company of a considerable portion of their semi- urgent traffic which will be diverted into cheaper though less expeditious channels of communication.
'B') PRICE OF PETROL IN HONG KONG.
1. Another question considered by the Commission was the price of petrol in Hong Kong as compared with the prices obtaining in other large cities in the Far East and in England. Unfortunately, owing to the number of inconstant factors which determine the selling price of this commodity, it is not easy to compile a table of comparative prices which will be readily intelligible and at the same time accurate and up to date. This must be remembered when considering the following figures, and allowance must be made for fluctuations in exchange values of currencies, variations in Customs and Excise duties, and small errors in the reduction of different measures of capacity to a common selling unit. With these reservations, however, the following table may be taken as representing an approximately correct estimate of the retail selling price of petrol, ex-pump, in the places enumerated, at the end of December, 1934.
Shanghai.
Unit of sale.
Gross retail selling price
Duty
Nett retail selling price
American Gallon.
.Sh. 91 cents.
2)
39
52
Converted into Hong Kong currency at rate of Sh. $123=H.K. $100, and into Imperial Gallons at rate of 1 American Gallon = 0.8325 of an Imperial Gallon, this equals H.K. 51 cents for 1 Imperial Gallon.