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I

AFFY

February 22nd, The Secretary of State for the Colonies had directed this permission to be refused, in view of the present complicated condition of telegraphic arrangements "in China", but that in a subsequent despatch of the 31st May, Lord Derby merely requests the Governor to refer to him any applications "which may be made to the local Government" in connection with the subject of "Telegraphic extension".

4

FO

Accordingly, the Governor will refer home by the next mail the application of the Telegraph company, also a letter on the subject addressed to him by the Agent at Hongkong of "the Eastern Extension Telegraph Company".

The Council observe that the general feeling of the European community at Hongkong appears to be in favour of the concession asked for by the Chinese Telegraph Company, on the ground that it is desirable, for commercial and other reasons, to encourage the opening up of China by Chinese capital and enterprise, and also because the refusal of facilities to this "Chinese company at Hongkong" appears to be made the motive or pretext, for refusing facilities...

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