III.
Telegram from the 0.A.G. of Hong Kong to the
Secretary of State for the Colonies.
Dated 7th July. Received 12-16 p.m. 7th July 1932.
99
No. 143 Confidential.
Your telegram of 3th June Confidential
10. 72. Radio. Impossible to allow any extension of
standstill period which has lasted effectively 3 years.
Imperative to proceed with overdue improvements in
service by introduction of equipment and regularising
and recruiting establishment.
Colony was naturally unwilling to appear
an exception if all other Colonies participated or
to doubt merger company's sincerity or ability to
carry out offer to provide adequate installation
although it was realised that agreement involved
sacrifice of revenue and of opportunity for local
development. But this Government now desires to resume
freedom of action which has been consistently reserved.
Interests of Hong Kong are being prejudiced by long
delay in arriving at settlement. The Government
will not be satisfied with supplementary agreement
which leaves time for final settlement indefinite
and must inevitably lead to further delay in improve-
ment of service. Government therefore wishes
negotiations with company to be broken off. If and
when company is in a position to reach a final settlemer
negotiations can be taken up again in the light of
conditions then existing.
4.
No. II.
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