CO129-520-7 Public Utility companies- acquisition by foreign groups 4-12-1929 - 26-1-1930 — Page 7

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It is not ownership we want, but power to

secure that the undertaking is managed by

persons who will be loyal to the Government

in time of war or emergency, the latter

being perhaps the more important. We can do

what we like in wartime, but we might be

considerably embarrassed in time of emergency,

e.g. a political strike engineered in Canton,

by an American manager playing up to the

Chinese as against the brutal British.

It

is a great pity that there is not a British

control and management clause in all public

utility concessions. It is too late for that.

But we might have an ordinance empowering the

Governor to take control of any public

utility enterprises such as electricity,

telephone, and bus services. The more we

enumerate the better, as it avoids the

appearance of legislating against this

particular concern.

There is a serious commercial side

to this American invasion. Clearly their

aim will be to substitute American machinery

as opportunities offer, and then get their

money back on the supply of spare parts and

renewals. That will be bad for the electric

industry here and bad for the consumer of

light and power in Hongkong.

And unfortunately

we cannot counter the move by customs duties

in Hongkong. But I see no means of avoiding

the danger.

15:130

G.G.