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Communication Company's hands. I emphasise this point

because authorities are apt to visualise colonial communica-

tions as something in the form of a monopoly. As far as

Hong Kong is concerned this cannot be, because the Chine se

have their own landlines And telegraph office for the

reception and distribution of messages, established in

Hong Kong, The only reason why this office does not obtain

all the traffic is because of the conditions beyond Canton,

but the Chinese Government re being well advised by the

Chinese Electric Company, which is closely related to the

International Telegraph nd Telephone Company who can soon

But the communications beyond Canton in order, therefore it

is useless to regard the service in the light of a monopoly.

Even so, the service as it is pays Hong Kong not only as

regards its actual revenue but as a trade facility, and

politically, for this reason it can only lead to the great--

est disappointment to all signatories to the agreement if

any variation to Clause 8 is attempted, and especially as

regards telegraph and telephone service with Shanghai.

I have outpointed Clause 8 as I can appreciate

the

that a commercial undertaking such as/I.C.& C. will

naturally not wish to duplicate their channels, for example

hen they take over Hong Kong, they will be operating no

less than three communication channels between Hong Kong,

Shanghai, viz: aster tension cable, Great Northern and

Radio, yet radio must continue, unless affront is offered

to the Chinese.

Another difficulty I anticipate is to reconcile

local requirements.ith Imperial desires, as regards

telephony, the Imperial project covers communication between

Hong Kong and Sing-pore and Singapore and Ingland, such a

service is necessary to keep level with the American service

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