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60 END

the service in question and to contribute in a

proportion to be agreed upon towards any pension or gratuity which may become payable to such

staff.

(e) By way of compensation for loss of present and

prospective revenue the Company to pay to the Government a royalty on all wireless messages.

sent and received by the Company in the Colony,

at a rate per word to be agreed upon.

(f) The Company to undertake to afford the Colony at

all times both cable and wireless facilities not

inferior to those enjoyed by ports of similar

size or importance to Hong Kong in other parts

of the British Empire.

3. If these proposals meet with Your Lordship's approval, I shall be glad to receive instructions as to

the further conduct of negotiations for the transfer to the Company of this section of the Colony's wireless service.

44. I may add that this Government proposes to

reserve to itself all rights in connection with Wireless

Telephony.

5. In connection with the transfer of staff to the Company I shall be glad to know what arrangements were made regarding the transfer to the Company of officers of the

British Government in the United Kingdom.

I have the honour to be,

My Lord,

Your Lordship's most obedient, humble servant,

M.D. Southoch.

Officer Administering the Government.

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