Agreement dated the 18th day of May, 1870, between THE CHINA
SUBMARINE TELEGRAPH COMPANY, LIMITED, hereinafter called the China Company, of the one part, and THE GREAT NORTHERN TELEGRAPH, CHINA AND JAPAN EXTENSION COMPANY, of Copenhagen, hereinafter called the Northern Company, of the other part. WHEREAS, the China Company is about to lay a Submarine Telegraph Cable from Singapore to Hong Kong, which cable will be connected by other submarine lines with Australia, India, and England. AND WHEREAS the Northern Company is about to lay a submarine telegraph cable from a point on the Russian Pacific Coast to Shanghai, in connection with land lines passing through Siberia and Russia, and thence to Western Europe, and connected with England. AND WHEREAS each of the said Companies contemplated the con- struction of a line of submarine telegraph between Hong Kong and Shanghai, touching at Amoy and Foochiow-Foo, two of the treaty ports of China, and also contemplated an extension to Japan. AND WHEREAS, with a view to avoid competition between the said two Companies, the following terms have been agreed upon. NOW THIS INDENTURE WITNESSETH, and it is hereby mutually agreed :-
1. The Northern Company (unless prevented by accident) shall, before the 1st day of October of the present year, 1870, construct and ship a submarine telegraph cable of a sufficient length to connect Shanghai and Hong Kong, and of the quality as to insulation and capacity for traffic set forth in the Specifica- tion hereto annexed, and will take all necessary steps to have the same laid as soon as possible, and such cable, together with the extension thereof to the treaty ports of Foochow-Foo and Amoy, if and when made by the Northern Company are hereinafter referred to as the Shanghai Cable.
2. The whole district between Hong Kong and Shangai shall, for all the purposes of this agreement, he treated as neutral district, both as to Land and Sea Telegraph lines, and neither of the parties hereto shall, (except under Articles 1 and 4,) construct or become directly or indirectly interested in, or make working arrangements with any Land or Sea Telegraph lines, within such neutral district, without the consent of the other of them.
3. The Northern Company shall not extend their lines by sea or by land south of Hong Kong, nor connect nor make working arrangements with or become directly or indirectly interested in any telegraph lines by sea or land south of Hong Kong, except those of the China Company, and the China Company shall not extend their lines by sea or by land, to any place in China north of Shanghai, uor to any place in Japan, nor connect or make working arrangements with or become directly or indirectly interested in any telegraphi lines by sea or land in China, north of Shanghai, nor in Japan, except those of the Northern Company.
4. The Northern Company undertake to connect Hong Kong by direct telegraph by sea or by land with the treaty port of Amoy as soon as possible, and at latest within one year after the China Company have laid their line from Singapore to Hong Kong, unless prevented by the Chinese Government or other force majeure, and in that case, as soon as possible thereafter, and in like manner to connect the treaty port of Fochoow Foo with Shanghai or Hong Kong as soon as possible, and at latest within two years after the China Company have laid their line from Singapore to Hong Kong, unless prevented by the Chinese Government or other force majeure, and in that case as soon as possible thereafter and in case of default, the China Company may make on their own
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Jr. 5322/2
2073