CO129-481 - Governor Sir Stubbs - 1923 [8-12] — Page 402

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and suitable arrangements made with the Government of the

Colony.

Regarding (1.)

The Government may, for reasons of its

Own,

consider it advisable to erect a station capable of

direct communication with Europe, America, Australia, etc.,

but might hesitate to assume responsibility for the operation

of such a plent. We would be prepared to act as Managers

of the station in all its branches our remuneration to be an

agreed percentage of the gross receipts. Or, if only our

technical services were required in the maintenance of the

equipment a reasonable annual fee would be expected.

With regard to (2) The formation of a local Company

might be considered in which the Government jointly with

ourselves, or the Government, jointly with local capitalists,

or any combination of these three interests, could participate.

Under such a scheme the project would, naturally, have to be

considered as a commercial undertaking to attract other than

Government capital. If, however, the strategical importance

of the staticn warranted an investment and operating costs

in excess of commercial limitations the Government might be

found willing to subsidise the station until sufficient

traffic could be developed to pay operating charges and a

reasonable return on the investment.

·

Commenting on (3.) If we are permitted to erect and

operate, wholly for our own account, a station within Hong

Kong we would be prepared a guarantee the Colony a continuous

wireless service of a character to be agreed upon but would

expect an exclusive license for a long term of years and a grant

of land for the ereation of our plant. In consideration of

the foregoing we would be willing to pay to the Government,

annually, a given percentage of the net receipta after making

suitable allowance for capital charges and redemption.

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