CO129-580-8 League of Nations- Medical aid for China and reduced cable rates 6-4-1939 - 5-7-1939 — Page 3

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cables. The effect of the continuance of the

concession, therefore, will be to divert the tele gra s

from the French route to the routes of Cable and

Wireless Limited, so it will be to the advantage

of the Company to continue the concessions for

telegrams from Hong Kong. I know of no international

undertakings which would prohibit this "undercutting";

but it is a point on which we should have the advice

of the General Post Office.

The Hong Kong end of the wireless circuit

between Hanoi and Hong Kong is operated by Cable and

Wireless Limited; it is possible, therefore, that

the French authorities may have consulted Cable and

Wireless Limited before granting the special rates

in respect of telegrams between Hanoi and Hong Kong.

On the other hand, the French may have promised a

reduction only on their share of the charges for such

telegrams.

I shoul send a copy of the enclosure to 1

semi-officially to Mr. Wilshaw, Chairman of Cable and

Wireless Limited, reference 3 on 53863/38 and ask

whether the Company are prepared to continue the

privileged rates for the telegrams in question.

At the same time we should send a copy of 1

and enclosures, with copies of 2 and 3 on 53863/38

hothosed above

Whyto

and the letter to Mr. Wilshaw/to Mr. Phillips of the

G.P.O., remarking that the effect of the maintenance

of the privileged rates from Hong Kong would seem

to be the diversion of the traffic in question from

the normal route between Hanoi - Geneva (presumably

a French route) to the routes of Cable and Wireless

Limited, and ask for his observations on this aspect

of the subject.

Send