COPY.

Enclosure

Hon.Col.Secy.

406

40243

RECE

REGE 10 DEL 00

Attach papers showing the terms upon which

the cable reserve exists.

13/9/1900. (sd) NaB.

Acting Col.Secy.

Government with

The attached Précis will show that the

Eastern Extension Telegraph Co.made 4 applications at 4 dif-

ferent times to lay cables between HongKong and Kowloon. The first 2 applications were granted upon the same conditions

as had previously been agreed upon by the the Great Northern Telegraph Co in 1870. Those conditions do not explicitly declare that the Government reserves its right to revoke the concession at any time, whether with or without compensation. This seems a most unfortunate omission. (It is difficult to say, however, to what extent Nos.7 & 8 of the con- ditions might be interpreted to reserve such right to the Government. This is a matter for the Attorney General) It is significant that the third concession to the Company in

1884, was made

conditions,nore favour undersli

erslightly different able to the Government. For in that case, owing to the advice of the Attorney General, the special condition above referred to as having been unfortunately omitted in the former cases

was

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