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the additional Services that offer and that are of

vital importance for the Colony's commerce. Even China, until recently so backyard, now possesses stations which transmit at a speed that the Hong King Station cannot cope with; Java, French Indo China and Siam have

radio telegraphic and telephonic communication with

Europe, and Shanghai will very shortly be linked by

radio telephone with Europe and America.

Either

the Merger Company or the Government must proceed

forthwith to remedy the situation and put an adequate

development programme in hand to keep abreast of the

urgent and daily growing requirements of the times.

Much valuable time has already been lost.

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I am not unaware of the difficulties presented

by the Chinese Government's attitude towards the

Cable Companies and I cannot surmise how far that

attitude will be maintained when the Herger Company

takes over the Hong Kong Government's Wireless Services.

Up to the present however it has been frankly hostile

and quite recently manifested itself by forcibly

closing down the Amoy Cable Office and transferring

the traffic to wireless, Had the Hong Kong Wireless Station been unable to handle tho traffic with Amoy

in this instance, the mercantile community of the

Colony would have suffered severely.

4.

It is scarcely necessary to add that important

revenue considerations are also at stake in any

unreasonable delay in the development of the Colony's

Radio Services; though I regard the expansion of this

4

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