12
been promoted more for strategic than commercial purposes, to introduce an exceptionally low rate to Europe viâ Siberia, with the result that a large portion of the traffic now transiting India would probably be diverted through Russia, to the serious injury of both the Companies and the Indian Government. This, I humbly submit, would be most unfair to the Companies whose cables, unlike Government land lines, must be worked at a profit if they are to be efficiently maintained.
"Under these circumstances, and having regard to the enormous benefits conferred upon the world at large by the submarine cables, as admitted on recent occasions by eminent statesmen, I trust that Her Majesty's Government will see their way to continue the support they have hitherto given to the Company against the danger above indicated.
"With regard to the objection raised by the Post Office to the Agreement not terminating before 1903, I have already explained that this date was fixed in order that all the Agreements made between the Companies and the Chinese might expire simultaneously, and considering the difficult and protracted nature of the negotiations, which have been in progress nearly three years, and the inconvenience attending the reopening of such complicated matters at short intervals, I venture to submit that fourteen years is not too long a period for an arrangement of this kind, especially as there is nothing in the Agreement to prevent a reduction of the tariff at any time when the contracting parties are in favour of altering it.
"I have, &c.
(Signed)
"JOHN PENDER,
* Chairman."
It was then thought that the matter was getting rather too technical for the Foreign Office to deal with; and accordingly it was arranged that the matter should be left in the hands of the Postmaster-General, who undertook to communicate with the London Chamber of Commerce and the Eastern Extension Telegraph Company, and arrange what instructions should, in his opinion, be sent to Peking.
Sir J. Pender was informed, and expressed his readiness to accept such an arrangement as the Postmaster-General might approve.
We await result.
Foreign Office,
March 10, 1890,
C. LI. HILL.
DRAFT.
Hongkong
MINUTE.
190
M. John Graham 15 Sep.
Mr. Wingfield, 15
Mr. Bramston.
Mr. Meade.
Sir R. Herbert.
Baron de Worms.
Lord Knutsford.
drafted for comment
Copy to 7.0.d., 7.
20 Sep.
7.0. King
17409
347
DS.
16 Sep. 90
I have the honour to acknowledge the receipt of your despatch
forwarding a memorial to Her Majesty from the
Amoy Hankow Chamber relative to a Convention alleged to have been made in 1887 between the Chinese.