CO129-532-8 Proposed transfer of Government Wireless services in Hong Kong to Imperial and International Communications- Ltd.... 19-12-1930 - 19-4-1932 — Page 185

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source of revenue, however welcome it may be, as not

of such vital importance to the community as the

provision of an adequate communication system. The

phenomenal growth of wireless telegraphic receipts

even under the regime of partially suspended animation

that has prevailed since the merger Company made its

proposals is a sure index of what awaits on proper

development. Considerable capital expenditure will

no doubt be required in the first instance but in my

opinion such outlay will be speedily recovered from

resulting increase of traffic receipts.

the

5.

I suggest that Mr. King's presence in England

be utilised as he can attend in person und explain

the situation in detail. He will be at your disposal

if required in connection with the consideration of the

draft agreement.

If however any hitch arises or the

negotiations break down I should, in view of the

importance of the time element, advise that he be

called upon to set out before your experts the programme

he considers adequate for reconditioning the existing

equipment and for the provision of Beam and Wireless

Telephony Services.

6。

I take the opportunity of requesting your

assistance in obtaining from the General Post Office

any information r. King may require regarding equipment

qualifications and grading of personnel. and in providing

him with facilities to visit the establishments of the

manufacturers of wireless equipment.

I have, etc.,

LO

5

(Signed) 7. PEEL.

Governor, etc.