CO537-5142 — Page 59

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would be obvious, particularly in Malaya where there is the same juxtaposition of Government broadcasting with commercial rediffusion. It would be my forecast that if this change were made in Hong Kong, within 5 years Africa would be the sole and precarious exception to commercial broadcasting in the Colonies.

It is worth adding, perhaps, that whatever may be opinion on the principles involved, the present would seem a most inopportune moment to suggest the transfer to a private company. The circumstances are such that one would have been less surprised if government had proposed to take over the rediffusion service than to divest itself of the broadcasting service.

I suggest, therefore, that the suggested transfer to the commercial company cannot be agreed to, and that in reply to the suggestion it should be made clear that the Secretary of State hopes and expects that the Government of Hong Kong will not merely prolong the life of the broadcasting Service by a series of reluctant reprieves but will rather make a sustained effort to improve it and establish it as a permanent and valued part of the Colony! s Administration.

This rejoinder would obviously carry much more weight, indeed it may be felt that it would only be justified, if it could be accompanied with an offer to make the contribution from United Kingdom funds which the Governor himself has suggested as, in effect, the price of preserving the status quo in broad- casting.

The amount concerned appears to be confined to a capital contribution not exceeding about £15,600.

I suggest that this could and should be offerred from the £1 million available for Colonial broad- casting. The Secretary of State's Circular Despatch of 29th March, 1949, refers. It is only an accident of time that when the list of 'priority' territories for benefit from this provision was drawn up a year ago, Hong Kong's political situation did not seem sufficiently threatening or its financial difficulties so acute as to call for its inclusion. We can now rely upon requiring for the Caribbean an amount which will fall short of the estimate for that area by many times the amount now needed for Hong Kong, and, for that matter, Hong Kong should now clearly take precedence over the Caribbean both on grounds of political importance and urgency and because it is nearer to having a definite scheme of development as the basis of an application for assistance.

I submit a draft savingram for consideration. If the file may be recirculated to me immediately before this is typed, I will draft, accordingly, a reply to the Governor's letter to Mr. Sidebotham (92).

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