CO129-539-13 Proposed transfer of Government Wireless Service to Imperial and International Communications Ltd. 11-4-1932 - 17-6-1933 — Page 66

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coming to the meeting, but had not intended to express his views (The Secretary of State's) until the views of the

Committee were known to him. The Secretary of State had

inclined towards the view of breaking off negotiations with

the Company and informing them, with regret, that Hong Kong

preferred to be given a free hand in view of the fact that the

Company were not in a position to erect the high power station,

but he proposed to make it clear to the Governor that the whole

of the Hong Kong service should, at a later date, be handed

over to the Company at a reasonable valuation. In giving

this reply to the Company, it was the Secretary of State's

intention that it should be stated that this action was only

being taken on account of the long delay in bringing negotiation:

to a satisfactory conclusion. Continuing, Mr. Vernon pointed

out that the Company, if they conducted their own services,

would be on the continual lookout for profitable connections,

but not disposed to start wireless services which would take

traffic from their cables, and he did not think that the

Committee would be justified in asking the Colony to sacrifice

themselves any further.

MR. WESTON pointed out that the Company had already agreed

to provide all the necessary extensions and improvements, with

the exception of the high power station, and further that the

Colony were not proposing themselves to erect the high power

station and would, therefore, be no better off.

AIR COMMODORE WARRINGTON-MORRIS said that he assumed

that the Hong Kong Government would lose considerable revenue

if the Company took over the wireless communications in the

Colony.

MR. VERNON said that undoubtedly if the Colony

were allowed to improve and extend their communications,

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