vesterday.

He has been to the Foreign Office and was told then that he had received a despatch as 8642. He writes to say that reply came not to that despatch and secondly informing him that he has fully decided to support the Company (the Eastern Extension Australasia & China Telegraph Company) as far as possible in order to assist communication.

Any legitimate influence would be well but it appears to be worthless.

Give him the information he wants.

D.I.7.

E.G.

"Jun 7.

The Eastern Extension Australasia & China Telegraph Company, Limited, 66. Old Broad Street, London, 18.

C 0.

Cor 9002

DERES

REOS 20 MAY 1.

May 78

Dear Lord Derby,

I am glad to inform your Lordship that the Submarine Cable between Hong-Kong and Shanghai laid by the Eastern Extension Telegraph Company is now open to the public and working satisfactorily.

The negotiations with the Chinese to obtain the landing of the Cable at Woosung have been difficult - at times almost desperate - and had the Chinese refused permission it would have been a serious blow to our commercial calculations as it would have involved prolonged and expensive arrangements with the land lines.

Right Hon.

Carl Derby,

x.c.

Colonial Office

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