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that the property is that of a commercial body. As to the statement regarding the name, "General Telegraph Administration of China", I may say that, the head Office being situated in the Foreign Settlement at Shanghai, the name was intended to distinguish the Administration from the Foreign Telegraph Companies in that port. It was not intended by the word 'China' (or Chinese) to signify that the Administration was established by the Chinese Government. Only the Government has granted the monopoly to the Administration and has appointed officials to supervise and watch over and support its interests. The statement in the despatch received that the name "precluded the idea that it was an ordinary commercial enterprise and that the Government could not therefore see its way to treat it as such" displays a lack of knowledge of the position of the Administration. I propose to request Your Excellency to inform the Colonial Secretary through the British Consul-General of the above facts, and request him to delay the removal of the telegraph poles for the present pending the arrangement of the matter.

This report has now been sent in to me. It is perfectly true that, as the Administration says, the capital and profits still belong entirely to the shareholders and are the property of a commercial body, and that the title "Chinese Telegraph Administration" was adopted in order to distinguish the Head Office at Shanghai from those of the foreign telegraph companies. Although under Government supervision and protection it still has for its object private convenience and profit.

You have always been most impartial in your conduct of international affairs, and have encouraged commercial enterprise. With a view to the maintenance of friendly relations and in the interests of commerce I have the honour to ask you to reply to the Colonial Secretary requesting him to delay the removal of the poles, etc., for the time being, pending the arrangement of the matter.

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