CO129-539-13 Proposed transfer of Government Wireless Service to Imperial and International Communications Ltd. 11-4-1932 - 17-6-1933 — Page 128

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strongly to them; but they may possibly be able to

Suggest some acceptable compromise.

1

So far as we can judge, there would seem to be

two courses open. The first would be to proceed with

the main agreement subject to some modification of the

provisions of Articles 8 and 9 which would make it clear

that the Government would not

give notice calling

^

upon the Company to

considerable establish additional wireless services for sometime.

etime

It might also be provided that the Advisory Committee

should be consulted before any such notice was given.

The alternative would be to acquiesce in the sugges-

tion by the 0.A.G. that negotiations should be broken off;

but if this were done it would seem to be essential to

Safeguard the financial interests of the Company by a

definite understanding with the Hong Kong Government that

their station should not undertake any new services which

would divert traffic from the Company's cables or at least

should not do so without the strongest reasons and the

consent of the Secretary of State.

R.V. Vernon, Esq.,C.B.

Yours sincerely,

F. W.Phillips