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B. QUEEN ANNES G.

WEST INSTER

The drown Agents for the Colonies,

4. Millbank,

Westminster,

3.7. 1.

Gentlemen,

2nd March, 1920.

23

T/liong Kong 2352.

we beg to acknowledge the receipt of your letter of

the 26th ultimo, and agree, under the circumstances, that

a decision should be ame to with regard to the telephone

exchange system required for the central exchange of the

new Government buildings without waiting for the tender

of the Western Mectric Company, Ltd.

We have carefully considered the matter and regret

we are unable to recommend an automatic system owing to

the initial outlay involved being too high. The Automatic

Telephone Manufacturing Co.'s tender, dated the 20th January

last, amounts to £3,726. 3. 6, plas installation charges,

whereas the coat of a manual system is approximately £474.

Also it is noted that no guarantee of delivery can be given.

Though there is some probability that the use of an

matic exchange would effect a saving in the operating

ises, the cost of maintenance and tus interest upon

japital expended would be very nign, Allowing 6:

west, the additional cost for interest alone would be

ut £200. per annum. For an automatic system, it is

essential that the whole equipment, out side lines and

sub-stations,

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