CO129-617-2 Hong Kong Telephone Company 22-2-1947 - 3-11-1947 — Page 12

SLOane 0321.

Dear Bigg,

531

12

COMMONWEALTH COMMUNICATIONS COUNCIL

106, EATON SQUARE,

LONDON, S.W.1.

12

'

10th September, 1947.

11

UL 11004 631

During a recent visit to Hong Kong,

General Nicholls (Cable and Wireless Ltd.,) was asked by the Managing Director of the Hong Kong Telephone Company whether Cable and Wireless Limited might consider the purchase of an interest in the Company.

Cable and Wireless Limited have asked me whether I think the acceptance of a financial interest in the company, which might or might not carry with it a nomination to the Board of Directors, would be likely to give rise to any local repercussions or be misinterpreted. I have informed Chapling orally

that it would be inadvisable for Cable and Wireless Limited to pursue this matter without first apprising the Colonial Office and the Hong Kong Government of the proposal.

So far as Cable and Wireless Limited are concerned it would not, I think, be appropriate for them to acquire any financial interest in a local public utility company.

If the Hong Kong Telephone Company are desirous of a public share in the concern then obviously the Hong Kong Government itself should be given first opportunity to subscribe and maybe appoint their own Postmaster General as a member of the Board of Directors.

Such a course might be a first step towards ultimate public ownership of the concern.

I am unaware of the terms of the concession under which the Telephone Company was established and granted the rights it enjoys.

Yours sincerel

to the bo

W.J. Bigg, Esq.