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necessary if the two parts of the line to Hongkong were under separate Administrations and messages had to be handed at the frontier from one Administration to another. Also I am informed by the Eastern Extension Telegraph Company's representative here that the maintenance and working of the line to Canton is satisfactorily carried out by the Chinese Telegraph Administration at the present time and that his Company would probably prefer the arrangement above suggested to one by which they would themselves have to work and maintain the Hongkong end of the line.
14.
The question considerably affects the interests of the Company which depends for its traffic to China in great measure on a good understanding with the Chinese Telegraph Administration. For example the lines, 12 and 30 miles in length, connecting the Eastern Extension Telegraph Company's cables at Woo sung and Sharp Peak with the Settlements at Shanghai and Foochow respectively, are the property of the Chinese Telegraph Administration but are worked by the Eastern Extension and Great Northern Telegraph Companies by arrangement with the Chinese Telegraph Administration, a concession which is probably made in consideration of the accommodation given to the Chinese Administration by the Eastern Extension Telegraph Company in its Offices at Hongkong and over the line from Hongkong to Sham-shui-po. Any disturbance of the existing arrangements in Hongkong might therefore react upon the arrangements at the places referred to. In view of these interests I would suggest that a copy of this Despatch be sent to the Eastern Extension Telegraph Company for their observations before instructions are issued to