FRIDAY, FEBRUARY 7, 1975
TELEPHONE COMMISSION OF INQUIRY NAMED
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A FORMER SENIOR PUISNE JUDGE OF HONG KONG, SIR ALASTAIR BLAIR-KERR, WAS TODAY NAMED TO HEAD THE COMMISSION OF INQUIRY APPOINTED TO EXAMINE THE AFFAIRS OF THE TELEPHONE COMPANY.
SIR ALASTAIR, A MUCH RESPECTED JUDGE WHO SPENT MORE THAN 27 YEARS IN HONG KONG, WILL BE ASSISTED BY FIVE MEMBERS.
THEY ARE MR. GORDON MACWHINNIE, THE FOUNDER CHAIRMAN OF THE HONG KONG SOCIETY OF ACCOUNTANTS AND SENIOR PARTNER OF THE FIRM OF PEAT, MARWICK, MITCHELL AND COMPANY- MR. JOHN SOONG, CHAIRMAN AND MANAGING DIRECTOR OF MOBIL OIL HONG KONG MR. Č.P. HUNG, PRESIDENT OF THE CHINESE MANUFACTURERS' ASSOCIATION- DR. L.K. DING, A MEDICAL PRACTITIONER- AND MISS LYDIA DUNN, A DIRECTOR OF SWIRE AND MACLAINE (FAR EAST) LTD. AND GENERAL MANAGER OF ITS EXPORT DIVISION. THE SECRETARY IS MR. DONALD TSANG OF THE COLONIAL SECRETARIAT.
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2.
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THE WIDE-RANGING TERMS OF REFERENCE OF THE COMMISSION ARE -
TO EXAMINE THE AFFAIRS OF THE HONG KONG TELEPHONE COMPANY INCLUDING ■'
(A)
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ITS MANAGEMENT AND ORGANISATION, ITS DEBT LIABILITIES AND ITS PROFITABILITY-
THE CAUSES OF ITS PRESENT CASH FLOW PROBLEM-
ITS PLANS FOR EXPANSION AND THE IMPLICATIONS FOR ITS FINANCES-
(D) THE ADEQUACY, EFFICIENCY AND QUALITY OF THE SERVICE WHICH
IT PROVIDES AND IS PLANNING TO PROVIDE.
IN THE LIGHT OF THE FOREGOING TO RECOMMEND :
(A) WHAT STEPS SHOULD BE TAKEN TO RENDER THE HONG KONG
TELEPHONE COMPANY FINANCIALLY VIABLE HAVING REGARD TO
ITS FINANCIAL POSITION AND PROSPECTS-
ER, THE NEED TO MAINTAIN AN ADEQUATE AND EFFICIENT
SERVICE OF PROPER QUALITY-
(111) WHAT IS EQUITABLE TO TELEPHONE USERS.
(IV)
THE ROLE OF THE TELEPHONE SERVICE IN HONG KONG. (B) WHAT MEASURES SHOULD BE TAKEN TO ENSURE
(1) THAT PUBLIC CONTROL OVER THE OPERATIONS OF THE COMPANY IS ADEQUATE, HAVING REGARD TO ITS CHARACTER AS A PRIVATE COMPANY PROVIDING A MONOPOLY PUBLIC UTILITY-
(1) THAT A PROPER BALANCE IS STRUCK BETWEEN THE
AVAILABILITY OF FUNDS FOR THE FUTURE MAINTENANCE AND DEVELOPMENT OF THE COMPANY'S SERVICE AND A REASONABLE RETURN TO SHAREHOLDERS ON THEIR
INVESTMENTS.
THE COMMISSION