25-

COLONEL WILLAN suggested that in any sanction given to the

local governments to develop their services that it should be

definitely specified that no development should be allowed which would

cause diversion of traffic from the existing cable systems, and

instanced the proposed wireless link between Hong Kong and

Japan which would result in a diversion of traffic from the

existing cable system to wireless.

SIR PHILIP CUNLIFFE LISTER said that in the particular

case mentioned the Colony would not in fact be obtaining a more

useful service as the cable service was sufficient for their needs.

MR. VERNON raised the question of radio-telephone services and

asked whether there would be any objection to the development of

these services by the local governments.

MR. PHILLIPS stated that the diversion of traffic to radio-

telephone services would not be great and suggested that if

negotiations for taking over the Government wireless services by

Imperial and International Communications Limited were to cease,

he thought that the local governments should be allowed to develop

local telephone services.

MR. VERNON pointed out that telephone services from Singapore

to Bangkok and Batavia would be of considerable advantage to the

commercial community in Singapore.

CAPTAIN MURRAY drew attention to the fact that the Communications

Company had been prepared to provide such services in Hong Kong and all

reasonable development of wireless services.

SIR PHILIP CUNLIFFE LISTER said that he saw no hopes of reaching

agreement between the local governments and the Communications

Company since the proposal to erect high power stations had been

abandoned, unless he were instructed by the Cabinet to order the

Governments to complete negotiations on the ground of high Imperial

13.

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