Cathay started reciting the names of the 12 divisions into which, according to Nasir al-Din, the "Cathayans" were dividing the day – and Martini, who of course knew no Persian, was able to continue the list. The names of the 24 solar terms matched as well. The story, soon published by Martini in the "Additamentum" to his Atlas of China, seemed to have finally convinced most European scholars that China and Cathay were the same. Even then, some people still viewed Cathay as distinct from China, as did John Milton in the 11th Book of his "Paradise Lost" (1667). In 1939,
Cathay Building was converted back to a cinema and a hotel. The cinema was the first to show American and British films in Singapore. A new air-conditioning plant was installed in the building in 1948. The colonial government vacated the building to be returned to the Cathay Organisation. The Cathay Restaurant was officially reopened on 1 May 1948 under the management of Cathay Restaurant Ltd. In 9 January 1954, the building reopened as Cathay Hotel with 60 rooms and subsequently expanded to 170 rooms. It had a restaurant, nightclub, swimming pool and shopping arcade. Cathay Hotel was closed on 30 December 1970,