XN000022-1978-04-26 — Page 26

WEDNESDAY, APRIL 26, 1978

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POSTMASTER GENERAL TO EXAMINE INTERNATIONAL

TELECOMMUNICATIONS CHARGES

******

THE POSTMASTER GENERAL HAS BEEN DISCUSSING WITH THE CABLE AND WIRELESS FOR SOME MONTHS WITH A VIEW TO EXAMINING IN DETAIL THE STRUCTURE OF HONG KONG'S INTERNATIONAL TELECOMMUNICATIONS CHARGES.

THIS WAS DISCLOSED BY THE SECRETARY FOR ECONOMIC SERVICES, THE HON. DAVID JEAFFRESON IN THE LEGISLATIVE COUNCIL TODAY IN REPLY TO A QUESTION FROM THE HON. T.S. LO.

MR. JEAFFRESON SAID IN EXAMINING SUCH CHARGES, THE POSTMASTER GENERAL, WHO IS THE TELECOMMUNICATIONS AUTHORITY IN HONG KONG, WOULD LOOK FOR JUSTIFICATION FOR ANY DIFFERENCES BETWEEN CHARGES FROM HONG KONG TO OTHER TERRITORIES AND VICE VERSA.

HE ALSO POINTED OUT THAT THE CABLE AND WIRELESS MAY NOT CHARGE MORE THAN THE APPROPRIATE CHARGE IN A SCALE OF FEES APPROVED BY THE TELECOMMUNICATIONS AUTHORITY AND THE POSTMASTER GENERAL IS SATISFIED THAT THE COMPANY'S PRESENT CHARGES IN HONG KONG COMPARE FAVOURABLY WITH THOSE ELSEWHERE IN THE REGION.

+FOR EXAMPLE, + MR. JEAFFRESON SAID, THE COST OF A TELEX CALL FROM SINGAPORE TO THE U.K. IS 50 PER CENT HIGHER THAN A CALL FROM HONG KONG TO THE U.K. THE EQUIVALENT TELEPHONE CHARGES ARE 23 PER CENT HIGHER.+

HE ALSO POINTED OUT THAT THE CABLE AND WIRELESS HAS NOT INCREASED INTERNATIONAL TELEX CHARGES FROM HONG KONG SINCE 1959 WHEN THE SERVICE STARTED AND IN FACT THE CHARGES HAVE BEEN REDUCED TWICE.

IN REPLY TO ANOTHER QUESTION FROM MR. LO, MR. JEAFFRESON SAID: IN DETERMINING THE CHARGES TO BE LEVIED IN A PARTICULAR TERRITORY FOR INTERNATIONAL TELECOMMUNICATIONS SERVICES, THE ORGANISATIONS CONCERNED TAKE INTO ACCOUNT THE COST OF THE INTERNATIONAL CIRCUITS, COSTS TO THE RECEIVING AGENCIES, AND THEIR OWN LOCAL SERVICE COSTS.+

THESE COSTS WOULD INEVITABLY VARY FROM COUNTRY TO COUNTRY HAVING REGARD TO SUCH FACTORS AS THE VOLUME OF TRAFFIC, THE INSTALLED COST OF EQUIPMENT, GOVERNMENT SUBSIDIES AND TAXES, THE COST OF STAFF, LAND AND OTHER OVERHEADS, MR. JEAFFRESON POINTED OUT.

+SUCH VARIATIONS CAN BE ACCENTUATED BY MOVEMENTS IN EXCHANGE RATES. AND THIS HAS HAPPENED PARTICULARLY IN RECENT YEARS WHEN FLOATING EXCHANGE RATES HAVE BECOME GENERAL,+ MR. JEAFFRESON ADDED.

HE SAID WHILE IT IS TRUE THAT THE RATES FROM HONG KONG TO THE U.K. ARE HIGHER THAN IN THE REVERSE DIRECTION, THOSE TO COUNTRIES WHOSE CURRENCIES HAVE APPRECIATED MORE THAN THE HONG KONG DOLLAR ARE LOWER.

+FOR EXAMPLE, THE RATES FOR TELEX CALLS FROM HONG KONG TO GERMANY AND JAPAN ARE HALF THE RATES FOR CALLS IN THE OPPOSITE DIRECTIONS, + MR. JEAFFRESON SAID.

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