O.A.G.
COL. OFFICE!
17
113
Telegram from the Gavarnar of Hong Kong to the
Secretary of State for the Colonies.
Dated 7th July. Received 12-16 p.m. 7th July, 1932.
No.143 Confidential.
92640
Your telegram of 8th June Confidential
No.72. Radio. Impossible to allow any extension of
standstill period which has lasted effectively 3
years. Imperative to process with overdue
Laprovements in service by introduction of equipment
and regularising and reoruiting establishment.
Colony was naturally unwilling to
appear an exception if all other Colonies participated
or to doubt merger company's sincerity or ability to
garry out offer to provide adequate installation
although it was realised that agreement involved
eaorifice of revenue and of opportunity for local
development. But this Goverment now desires to resume
freedom of action which has been consistently reserved.
Interests of Hong Kong are being prejudioed 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 improvement of
service. Government therefore wishes negotiations with
company to be broken off. If and when company is in a poss tion
to reach a final settlement negotiations can be taken up
again in the light of conditions then existing.
Approval is therefore requested for Colony
interest of
to develop its own service with China in the xbxxin local
trade which will be prejudiced materially by further delay.
Development of communications with
neighbouring castem countries is of almost equal
urgency and importance and I request authority to enter into negotiations as opportunity coours.
i
of Phillips C
Peel
1.C.C.
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