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 206

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policy may be to drop the wireless so that their cable

system may be maintained profitably.

It is not for me to criticise this policy from

the business point of view, but I am strongly of the

opinion that if the British Wireless Service is not

suitably maintained in Hong Kong, the future of wireless

in Asia falls entirely into the hands of the Americans.

very

The Americans are already/ačtive in China and it would be

a severe blow to our prestige if the splendid service

established from Hong Kong is allowed to go.

It would probably be difficult for the Hong Kong

Government to keep a wireless service in competition with

the Imperial Communications' cables, but I do not see why

steps should not be taken by the Company to maintain an

efficient Imperial Wireless Station at Hong Kong.

I imagine that either Ezechiel or Clauson may

have, on their return, some views on the subject, but,

in the meantime, I suggest that the Colonial Office should

be urged to get the Communications Company to agree to

complete the proposals as suggested in the despatch

recently sent in by Government.

I enclose a memo lent me recently by King.

Yours sincerely,

(Sgd.)

A. H. Preece.