The Eastern Extensions Company possess the right to lay submarine cables up to Canton and Shanghae. The Company has, however, consented to waive the first condition that the Canton-Hongkong Wa Hop Telegraph Company combine with the Eastern Company to construct a land line between Canton and Hongkong.
But the Chinese Company, after having agreed to this proposal, is hanging back, and at the same time, the Chinese Government is withholding permission from the Eastern Company to lay a submarine cable to Shanghai.
I accordingly request that in laying this letter before Her Majesty's Secretary of State for the Colonies, you will state to His Lordship that under the circumstances detailed above, Lord Granville is of opinion that it would be well to decline to comply with the application of the Canton...