CO129-539-13 Proposed transfer of Government Wireless Service to Imperial and International Communications Ltd. 11-4-1932 - 17-6-1933 — Page 65

replying to the telegram from the Governor of Hong Kong.

CAPTAIN MURRAY observed that the Colony's Report

for 1931 showed that they had direct communications

with China, Siam and the East Indies, and indirect

communications with Europe, via Manilla and the United

States of America, and the profit on these communications

showed a 50% increase on 1930.

MR. VERNON observed that undoubtedly it was

a profitable service and was at the expense of Imperial

and International Communications, Limited.

CAPTAIN MURRAY suggested that this fact was to

be deprecated, and if the Colony were allowed to proceed

with their extensions and developments it would create

a precedent which might be hard to refuse if similar

applications were made from elsewhere.

MR. VERNON pointed out that the Hong Kong Govern-

ment were already in possession of the service, and

suggested therefore that a precedent would not be

created. The Colony had been prepared to sacrifice

the service in imperial interests on the understanding

that they would obtain thereby the high power service.

As the high power service was not now forthcoming they

were not prepared to release their hold on the existing

services which were remunerative.

COLONEL WILLAN pointed out that apart from the high

power service the Company were willing to provide

all the other services asked for, and the real difficulty

only revolved round the high power service station.

MR. VERNON said that he had discussed this matter

with the Secretary of State for the Colonies before

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