"The said land lines and connections shall be maintained as at present respectively by the Administration and by the Eastern Extension, Australasia, and China Telegraph Company (Limited).
"Art. 16. The Companies shall not extend their cable system to any place in China and Corea without the consent of the Administration beyond Woosung, Sharp Peak, Kulangsu, and Fusan, where their cables are already landed, but their existing landing rights already granted by the Chinese Government at the above-mentioned places shall be in no way prejudiced by this Agreement.
"Art. 17. Save and except as expressly varied by these presents the working agreements now in force between the Administration and the Companies remain unaltered.
"Art. 18. This Agreement shall take effect from the day the Administration has connected their land lines with the telegraph lines of any adjacent country in telegraph communication with Europe, and shall be in force till the 19th May, 1903, and shall during this time be binding on the Companies and on the Companies' successors, as well as on all Chinese Administrations, present and future, governmental, or otherwise, and shall apply to all telegraph systems owned or controlled in China and Corea by such Administrations, for which purpose the Administration shall have the same confirmed and authorized by the Imperial Commissioner for the Northern Ports and by the Tsung-li Yamên. The Companies on their side shall have the same confirmed by the Danish and the British Ministers at Peking.
"Art. 19. Any difference between the Administration and the Companies touching the construction of these presents or any of the matters herein contained shall be referred to the arbitration of three Arbitrators, one to be chosen by the Administration (who shall be the Imperial Commissioner for the Northern Ports or other high Chinese official), and one to be chosen by the Companies (who shall be the British or the Danish Minister at Peking, provided they be willing to act), and the third to be chosen as Umpire by the said two Arbitrators before they enter upon the matter referred, and the decision of such three Arbitrators, or any two of them, shall be binding and final.
"Art. 20. This Agreement has been made out in triplicate, one copy to be held by the Administration and two copies to be held by the Companies.
Chefoo, 10th August, 1887, answering to Kwang Hsü, 13th year, 6th moon, 21st day.
(Signed) "SHENG HUANG HSUN.
(Seal.)
"For the Great Northern Telegraph Company,
(Signed) "J. HENNINGSEN.
For the Eastern Extension, Australasia, and China Telegraph Company (Limited),
To India Office, October 29, 1889.
India Office, November 7, 1889.
To Sir J. Pender,
Sir J. Pender, November 14, 1889.
To India Office,
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The alterations in the original Agreement were few and simple, and did not appear to us to affect those portions to which India had objected as placing eventual telegraphic communication with China viâ Burmah at an undue disadvantage.
The India Office agreed in this view of the new Agreement, but observed that unless it was perfectly understood by all parties that, so far as India was concerned, the question as to what the terminal rate should be for through messages viâ India should remain open for future negotiations between India and China, the former objections of the Indian Government must be regarded as standing.
Sir J. Pender was informed that Her Majesty's November 9, 1889. Government would assent to the new Agreement on the above condition, and that condition has been accepted by him on behalf of the Companies.
A draft of a telegram to Sir J. Walsham November 18, 1889. informing him of the above was submitted to the India Office for concurrence on the 18th November. That telegram was to the effect that the modifications did not in themselves remove the objections of the Indian Government, but that Her Majesty's Government would assent to the arrangement as it then stood on condition of its being perfectly understood by all parties to it that the question of a terminal rate for through messages to China viâ India, and for messages between India and China, was kept open for future negotiations between India and China.
To General Post
However, before it was sent off strong representations were received from the mercantile bodies at Shanghae and Hong Kong and from the London Chamber of Commerce to the effect that by the proposed Agreement telegraphic charges would be maintained for many years at a high rate in consequence of the exclusion of competition.
It was then decided to consult the Post Office, and suspend further action for the time. Sir John December 11, 1889. Walsham and Sir John Pender were so informed;
To Sir J. Pender,
and on the 13th December the following Memorandum, embodying the views of the Post Office, was communicated to the latter for observations:-
(Signed)
(Signed)
"Witness:
"HENDRICK BOHR."
"WALTER JUDD.
Foreign Office, December 13, 1889.
"In view of the mercantile interests at stake, the term of the proposed Agreement appears much too long, and, on the assumption that the Agreement is to be carried out, the term ought not in any case to be more than seven
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