XX SECRET.

Sir,

RECEIVED

JO

JAN 1939

C. O. REGY

GOVERNMENT HOUSE,

HONG KONG.

14th December, 1938.

12

I have the honour to inform you that at a recent

meeting of the Hong Kong Local Defence Committee the

question of the advisability of laying down a cross-harbour line to connect the works of the Hong Kong Electric Company, Limited, on the island with those of the China Light and Power Company, Limited, on the mainland was brought up for

discussion.

2. Neither the military nor the naval members considered that the connection was vitally necessary, but all agreed that it was a very desirable measure as a means of rendering it more probable that a supply of electric light and power would be continuous to the whole Colony in the event of damage to either of the stations by a bombing attack from the air.

3. The cost of purchasing and installing such a line is estimated at $500,000. The attitude of the managements

of the two companies when approached unofficially seems to have been that technical and other objections to a "dead" line to be used only in emergency can be overcome, but that no expense in connection with it ought to fall on the

companies. Since, however, it is not considered absolutely essential to the defence of the Colony, I cannot support any

THE RIGHT HONOURABLE

MALCOLM MACDONALD, M.P.,

&C.

&C.,

&c.,

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