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1 E. G.A. Grimwood
22-2-47
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It seems that there are no papers in the Colonial Office about this matter except 59566/2 which contains nothing of importance. It appears to have been conducted entirely by the Planning Unit and no Planning Unit records have been left with Mr. Grimwood in Park Street. We therefore do not know what arrangements were made between Mr. Thomson and the Hong Kong Telephone Company, what, if any, financial guarantee was given to the Company nor the relations of the Company with the Hong Kong Government and whether the Hong Kong Government have made any loan to the Company.
From
I have discussed this with iur. L.5. Smith. Mr. Grimwood's letter at 1 and the enclosures to 1 it appears that in September, 1945, the Hong Kong Telephone Company stated that they did not require the equipment for which an order amounting to £45,000 had been placed, prior to the liberation. This apparently is
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still the position but we should know the views of the Hong Kong Government who may wish the equipment - or part of it to be available for Hong Kong. We should also obtain confirmation that the Hong Kong Telephone Company will bear the costs of disposal and any other losses involved in their non-acceptace or the order. Messrs. Preese, Cardew and Rider estimate the prospects of disposal as favourable but there may well be some loss and certainly expenses to be met and as Mr. Smith has said, the Treasury are unlikely to agree that any part of these expenses should be borne by the Hong Kong Government. The first step therefore appears to be to telegraph to the Governor. ? as in draft here- with.
I have added a second draft letter to Mr. Grimwood explaining what we propose.
Ha
2 Lo Hong Kong tel to 357 bonf-
To Hong long
Tak No 445
4. for atten & Samneks
5th Grimwood
26.2.47.
CONS
28.2.47.
CONS
18. 3. 7,
28/2/47.
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