2

Communication Company's hands. I emphasise this point

216

because authorities are apt to visualise colonial communications

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

Kong is concerned this cannot be, because the Chinese 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 are being well advised by the Chinese

Electric Company, which is closely related to the International

Telegraph and Telephone Company who can soon put 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 butas a trade facility, and politically, for

this reason it can only lead to the greatest 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 that

a commercial undertaking such as the I.C.& C. will naturally

not wish to duplicate their channels, for example when they

take over Hong Kong, they will be operating no less than three

communication channels between Hong Kong, Shanghai, viz:-

Eastern Extension cable, Great Northern and Radio, yet

must continue, unless affront is offered to the Chinese.

Another difficulty I anticipate is to reconcile

radio

local requirements with Imperial desires, as regards telephany, the Imperial project covers communication between Hong Kong

and

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