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4.

Actually the whole original plant at D'Agilar may be said to be still in use, and although it is necessary in compliance with revised regulations as regards interference, to replace the present spark transmitter with a valve transmitter, the spark set will still be retained in use for emergency purposes.

5. That it is necessary to remodel a station

almost from year to year would be a more true statement, but this work concerns chiefly the type of circuits used, this work is regarded as an ordinary recurrent expenditure, and has always been carried as such.

6. During the years 1926 and 1927 very little expenditure was incurred, although owing to the advent of the short wave system, and the remarakbie results obtained with this system, most other administrations (chiefly other than British) went on ahead. The consequence being that Hong Kong is not at the moment equipped with gear that will provide a service equal to that provided in the neighbouring countries, such as the Philippines, Java, French Indo-China, Japan, etc. etc.

7. It can be said that Hong Kong has a satisfactory and ample cable service, this may be so, but the fact remains that the surrounding countries have not, and even where they have a cable service, the administrations

prefer to use wireless, and in the case of our most important neighbour, that is China, it can be assumed that as they reconstruct their various system of communications, that for telegraphy purposes wireless and wireless only will be the medium used.

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