CO129-587-7 Telephone Amendment Ordinance 1940 9-4-1940 - 16-4-1940 — Page 2

1. Col sec.

23/395/1940

9-440

2

Is Telephone Aradt. Coderance No 4. 1940 (12 copain)

29/4/40

In de tosee fully

mals reentice

26/4/40 alouce.

2. you.

183

16.4.40

General.

Zo. seated as of order. If report by Attorney-

es.

Subject to my doors ha megron

may have

and

to tegne oborus.

"Shavelgoldc.

? signify non

dist allowance mals recutiv

30/4/40

This is an important measure.

Formerly the dividends of the Company were limited to 15%, the Government taking a share of any excess profit and the remainder going to the reduction of charges. Now the Hong Kong Government will get 500 telephone lines free, a reduction of 25% on the standard rates in respect of any lines above that number and an additional royalty of half the profits over and above the amount required to pay a dividend of 12%.

The Government seems to have done very well; public telephone subscriptions are admittedly reasonable and the argument that the old system gave the Company no incentive to earn further profits by greater efficiency or economy has been removed. So the whole arrangement seems admirable.

Noct

lui) re

Jmegson

Copsign

2/5

9.5.

1st May, 1940.