:
position to judge how far this is true of the relative merits of
the particular services now in question. Unless lower rates are
granted the maintenance of wireless services side by side with
cables does not, probably, confer any direct benefit upon the
business community; the merit of the arrangement in the present
instance may lie in the facts that a reduction in cable rates
has been directly promoted, and that even a moderate amount of
commercial traffic may help to meet the cost of maintaining the
wireless station for other purposes.
It is noted that the word-rate ( (30 gold centimes) earned by
the Hong Kong station upon traffic with the Philippines at
existing rates is already as low as that upon any other traffic
with the sole exception of the service with Macao. It is as a
rule more difficult for a wireless service to offer reduced
charges for comparatively short distances than upon long-
distance routes where the capital and maintenance costs of cables
necessitate relatively high cable rates, and it may be doubted
whether a lower rate between Hong Kong and Manila could
economically be conceded.
The cable is direct and presumably not congested.
So far
as the Postmaster General is in a position to judge, the present
cable rate of 75 centimes from Hong Kong to Manila seems not to
be excessive, but to compare favourably with the rates charged
by the Eastern and Associated Companies for similar distances
under similar conditions.
A diversion of traffic from the cable would in part promote
foreign interests at the expense of the British cable company.
In this connexion it may be remarked that the projected
programme of additional wireless services from Hong Kong would
involve a fairly substantial extent of competition with the
Communications Company, especially if the wireless rates are to
be lower than the cable rates, and that this competition would
apparently be organised in every case with the help of foreign
companies.