CO129-539-13 Proposed transfer of Government Wireless Service to Imperial and International Communications Ltd. 11-4-1932 - 17-6-1933 — Page 135

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The difficulty now was that the Government of Hong Kong

stated they were getting opportunities of opening up

ncy services which they were anxious not to refuse, but

on the other hand, the Colonial Office felt it would

be embarrassing to the Communications Company if the

Government of Hong Kong were allowed to undertake new

services which, in some cases, would only compete with the

Company's cables. In reply to a question from Sir Philip

Cunliffe-Lister, he said he understood the Company

ought to be in a position to take over the existing Hong Kong

wireless service at a fairly early date.

Continuing, he said that the agreement with the Hong

Kong Government contained a clause regarding the provision

of a high power wireless station and if the Company shoved

their intention of either deferring

or not carrying

out this provision, then the Hong Kong Government might

perhaps raise difficulties. In answer to a further

question from Sir Philip Cunliffe-Lister, he said that the

Company would pay a royalty to the Hong Kong Government

in respect of the services they took over.

SIR PHILIP CUNLIFE-LISTER said he could quite sce the

objections to the Hong Kong Government opening up services

which the Company might want to suppress. At the same time

it seemed a pity to refuse offers of new services when they

occurred, and he wondered whether it might not be possible

for such offers to be submitted to the Company for their

agreement.

IR. PHILLIPS emphasised that there was mixed up in this

question the one of diverting cable traffic to wireless

traffic.

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