-6-

calling subscriber, conversation can be carried on witho

interruption and with secrecy and the system is less liabl

to disorganization owing to strikes or to epidemics 270

incapacitating the staff. While, therefore, this system

undoubtedly gives a quicker and more efficient service than

the Manual, the question of the adoption of either system

in any particular case, is usually regarded as an economic

unless there are local factors which have a determining

influence in the matter.

one,

(15). In Great Britain the economic principle is applied

and comparisons are made on the basis of the annual charges

on the two systems, including interest on capital,

depreciation, maintenance, operation and a proportion of

the overhead charges. On this basis and with the

experience already gained in areas where Automatic exchanges have been in use for some years the British Post

Office have been able to lay down a policy which, stated

briefly, provides for the establishment of Automatic exchanges in all areas where the probable expansion in a period of twenty years is likely to exceed 1000 lines. Where on investigation this development is not anticipated Manual exchanges are to be installed.

(16). In this Colony the language difficulty is a factor to which the fullest consideration should be given in

Mr. Bennett informs me that arriving at a decision. approximately 65 per cent of the telephone users are

Chinese. The majority use the Cantonese dialect, but other

Many subscribers, both Chinese dialects are spoken.

European and Chinese, allow their telephones to be used by uneducated persons, who use a broken dialect which the operators find difficult to understand.

:

A large percentage

of the calls on the present system are made or answered by this class of people on behalf of their employers. time of the operators is often unduly taken up in trying

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The

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