should contain provisions safeguarding against interference and also to enable the Government to resume control of the transferred services in the event of emergency. I am advised, however, that clause 27 of the draft agreement does not adequately incorporate in the draft agreement the provisions of Articles 14 and 22 of the principal agreement of December, 1937, since the provision of these Articles cannot apply to the circumstances of the draft agreement without adaptation and modification in respect or the points mentioned below, for which clause 27 makes no provision:-

Article 14 (b) "The Station" hera refers to the external fixed station licensed by the principal agreement. To what extent is this paragraph to apply to new stations operated under the new agreement? Should it be applied at all to such stations as provide the services mentioned in clause 2 (e) and (g) of the draft agreement?

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Article 14 (c) "the licensed apparatus" under clause 27 of the draft agreement would include apparatus used by the Company for the provision of the new services now to be undertaken by it. it desired that paragraph (c) should apply to all such Apparatus? e.ġ. apparatus used for the provision of the services mentioned in chatse 2 (e) anu (g) of the draft greument?

Article 14 (1) ·· This paragraph protects, against damage or Interference by the apparatus of the Company "any telegraph line of the Governor already existing" 1.6. existing at the date of the principal agreement. In respect of damage or interference by new apparatus operated by the Company under the draft agreement it appears that such protection should be extended tu nover telegraph lines of the Governor existing at the date of the new agreement,

Article 14. (g) Thia paragraph makes provision for compensating the Company if it has to suspend the operation of, or remove, its installation.because the installation is interfering with "any telegraph line of the Governor hereafter constructed", i.e. constructed after the date of the principal agreement. But compensation for the suspension of the operation, or the removal, apparatus operated by the Company under the draft agreement should be restricted to cases where such suspension or removal is necessitated by interference with any telegraph line of the Governor constructed after the date when the draft agreement is concluded. This modification is the corollary of that suggested above under Article 14 (f). In both cases it is assumed that there will continue to exist in Hong Kong "telegraph lines of the Gover.or" as defined in Article 14 (e) of the principai agreement

Article 22 (3)

"or any lesser period during which the Company has been in possession of the fixed station commercial radio communications": This is not a period-with reference. to which the receipts of the Company from services operated under the draft agreement can be calculated. The saine applies to Article 22 (4)

where the same expression is used.

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16.

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