Lordship's despatch now under acknowledgment, I caused a communication to be addressed to Mr Bullard, asking for further information as to the progress of the arrangement in question. I now enclose a copy of his reply, from which it appears that the Government at Peking and the Viceroy Li Hung Chang have directed the Chinese Telegraph Administration to take over the line between Canton and Kow Wa, and to connect it at Kowloon with the line of the Eastern Extension Co., by which it will be brought into Hongkong.
This is the best and most convenient arrangement for all parties concerned; and I trust that I shall be able soon to report that it has been carried into execution. I am advised that the Government of Hongkong had legal power to prevent the Wo Hop Company from running steam-launches between Kow Wo and this island.
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