"The Singapore Free Press"
January 7th, 1893.
275
ELSEWHERE in this issue appears an article from the Hongkong Daily Press on the subject of an alternative "Hongkong-Singapore cable, via the Sarawak and Labuan route, which its opening paragraph would lead the reader to infer was a practically settled thing. As we are informed, matters are by no means so advanced as that, but it is the case that the project is being seriously entertained by the directorate of the Eastern Extension.
Primarily the idea was prompted by Imperial considerations, and it was as a naval strategic line, and as giving an alternative to the existing cable via Saigon that various admirals, chiefly Sir VESEY HAMILTON and Sir NOWELL SALMON, recommended this scheme as strategically advisable. But neither Hongkong, the Straits Settlements, nor the Imperial Government could give any subsidy, and commercially the cable was hardly wanted as the Saigon cable itself, even now, can scarcely be said to be quite fully occupied.
As to the chance of local traffic from Sarawak, Labuan, and North Borneo, that would be so infinitesimal that it would not be worth mentioning, however valuable an aid it might prove to the ultimate commercial development of those regions.
The scheme has again been suggested by the Company itself on the general principle of strengthening its cables by duplication or the provision of alternatives. And it is understood to be a fact that it is the Singapore-Saigon link that is the weakest, there being for this section only one cable. The Penang-Singapore link has three cables: Penang-Madras, two; Java-Australia, three; and Saigon to China, one being direct and one via Tonkin.
It is contemplated, anyway, to duplicate the Hongkong-Philippine section to Bolinao, and therefore the scheme now to be submitted to the shareholders for approval at the general meeting at the end of April will involve a cable from Singapore to Bolinao, taking Sarawak, Labuan, and North Borneo en route to Palawan and Bolinao.
The Manila Government have had a scheme in view for extending telegraphic communication through the Southern Philippines in short local links, and the existence of these would facilitate the connection by the route to Bolinao for Hongkong.
At the close of last year, we believe, the Hongkong and Straits Governments were approached again by the Company in the hope of obtaining subsidies, but "owing to the state of the Colony's finances," Sir CECIL SMITH could hold out no hope. The same reply is understood to have been given at Hongkong.
It will therefore be seen that by no means can it be said that the scheme is sure to be executed. The proposed cable will run to about 1,900 miles, which at about £230 or more per mile will amount to not far under half-a-million of money. It so happens that the reserve of the Company is about £425,000, and it is uncertain how far shareholders will regard a proposal that would absorb an amount equal to the reserve funds.
However, if approval be given to the scheme on the grounds of general policy, the funds for this would be raised by debenture bonds in the same way as money was obtained for the West Australian cable. The cable from Hongkong to Bolinao, however, (say 500 miles) would be constructed out of the reserve fund.
Ordinarily, for such a line as is proposed, it would require an annual income of from £46,000 to £48,000 to make ends meet. There would be, say, 3 per cent. for amortisation, renewals, &c., 2 or 3 per cent. for working expenses, and 5 per cent. to meet interest on capital; total 10 or 11 per cent.
That is really, as we are informed, the position of the scheme, and it is premature just now to reckon upon its execution till the views of the shareholders are ascertained.