Telephone:

ONDON WALL 3240.

GM(C).

CONFIDENTIAL.

167

Imperial and International

Communications Limited.

Electra House Moorgate,

London. 5.

E.C.2.. 23rd July 19.3.1....

The Under Secretary of State,

Colonial Office,

S.W.1.

Sir,

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HONG KONG.

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King

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We beg to refer to your letter of the 25th June reference 82765731 enclosing two prints of the draft Articles of Agreement between the Government of Hong Kong and Imperial & International Communications Limited.

We note the suggestions made by the Postmaster General and deal with these in our subsequent observations.

We note that the Secretary of State is giving further consideration to the terms of Articles 13 and 16 regarding the transfer and treatment of personnel, and therefore we reserve our observations on these articles and on Article 15.

We beg to submit the following observations on the other proposals as set out in the draft agreement :

Article 1.

We suggest that it would be convenient if the rights granted to the Company included communication by wireless telephony with ships at sea.

Article 2.

With reference to the addition suggested by the Postmaster General under heading (c), we understand the "broadcasting services" referred to herein are entertain- ment broadcasting services and the transmission and reception of news for which no payment is made. We think, however, that this matter can better be dealt with under Article 14.

Article 3.

This may require revision when the date for taking over is agreed.

The term "radio-electric service" in the first paragraph should, we think, be substituted by "radiotelegraph service".

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