--

I have discussed the matter informs me that all repairing and rewinding work carried on at his Works is done by Chinese

mechanics under European supervision and this fact appears to

justify the assumption that they will do equally well on

Automatic exchange work.

272

Recommendation of Automatic System. (20). In view of the advantages of the Automatic, above de-

scribed, and seeing that the annual costs in connection with it

are likely to prove lower than those of the Manual I recommend

the adoption of this system for use atthe principal exchanges

of the Colony.

(21). The question of the number of Automatic exchanges to be

equipped, the order in which they should be installed, and the

provision that should be made for the smaller exchanges, is

dealt with in succeeding paragraphs.

(22). The Automatic system should be of the full automatic,

five figure type, and in accordance with the details of a

Specification which I propose to prepare before I leave the

Colony,

Future Development and proposed Exchange Equipments. (23). In the Telephone Ordinence. No. of 1925, it is laid down that telephone exchanges capable of expansion to meet the

following requirements shall be provided:-

(a) In the City of Victoria 10,000 Subscribers.

(b) In the Peak District 500 Subscribers.

(c) In the neighbourhood of Quarry Bay 1,000 Subscribers.

(d) In Kowloon 10,000 Subscribers.

(e) In New Kowloon 1,000 Subscribers.

(f) In Taipo 500 Subscribers.

Also that further exchanges not exceeding two in the Islend of Hongkong outside the boundaries of the City of Victoria, and four in the New Territories, shall be established as required. (24). In deciding upon the positions of Exchanges and the number and capacity of each in any area it is usual to carry out a development study on the basis of the probable expansion

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