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TELEGRAM *

7.S 2,6* SAVINGRAM

1.5216**

* The word Priority may be entered here, if necessary,

To:--

File No.

O.A.G.,

T

HONG KONG.

$.S. Saw 216.

Sent.

M...

M. Logan

11/10/48.

Repeated to:--

11/10/48.

Mr.W.I.J. Wallace

Sir M S. Abrahams

Mr. Sidebotham

Trafford Smith

12/10/48. (see minute)

12/10/48.

Priority:

15/10/48

21.10 48.

P

To be transmitted :-

Nil.

No.

In Clear

Reply urgently required.

.Important مراد

atum Immediate.

Most Immediate.

Code

Cypher

Mr.

at once

Permt. U.S. of S.

Parly. U.S. of S.

S. of S.

B

?

Distribution:-

(1)

Further action:-

(6)

15855746 5m 6.48 Wa, & Co. 51/3

hours.

REAKisted.

Xexxxx Top Secret and Bereen!.

Your despatch No. 21 of 9th June. Proposal to

amend Telephone Ordinance No. 9 of 1925.

1. I am advised that the insertion of this

amendment in the Ordinance would create a new and

important obligation as a condition on which the con-

cession was granted and in accordance with which it

is operated (vide Section 3 of the Ordinance 9 of 1925).

Presumably refusal of compliance with a requisition

under the proposed new Section 55A would have to be met

by some kind of action, otherwise the Governor's order

would be ineffective, in which case Section 45 or 46

(or both) of the Ordinance would no doubt be invoked.

The Company might well complain that to legislate in

this way is something very much like a breach of contract

introduced after the agreement under which the con

cession was granted, and which, because it is legis-

lation, they are powerless to prevent.

2.

S

It would, therefore, be inadvisable to proceed

with the amending Bill without obtaining the formal

agreement of the Company. I note, however, from

demi-official correspondence on this subject (MacDougall's

letter of 22nd September) that this may present diffi-

culties at the present time, and I must say that, in any

case, I should have thought it preferable to avoid

/

recourse

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