50
coming to the meeting, but had not intended to express his views (The Secretary of State's) until the views of the
Committee were known to him. The Secretary of State had
inclined towards the view of breaking off negotiations with
the Company and informing them, with regret, that Hong Kong
preferred to be given a free hand in view of the fact that the
Company were not in a position to erect the high power station,
but he proposed to make it clear to the Governor that the whole
of the Hong Kong service should, at a later date, be handed
over to the Company at a reasonable valuation. In giving
this reply to the Company, it was the Secretary of State's
intention that it should be stated that this action was only
being taken on account of the long delay in bringing negotiation:
to a satisfactory conclusion. Continuing, Mr. Vernon pointed
out that the Company, if they conducted their own services,
would be on the continual lookout for profitable connections,
but not disposed to start wireless services which would take
traffic from their cables, and he did not think that the
Committee would be justified in asking the Colony to sacrifice
themselves any further.
MR. WESTON pointed out that the Company had already agreed
to provide all the necessary extensions and improvements, with
the exception of the high power station, and further that the
Colony were not proposing themselves to erect the high power
station and would, therefore, be no better off.
AIR COMMODORE WARRINGTON-MORRIS said that he assumed
that the Hong Kong Government would lose considerable revenue
if the Company took over the wireless communications in the
Colony.
MR. VERNON said that undoubtedly if the Colony
were allowed to improve and extend their communications,
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