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terminal Chefoo telegrams written in Kana, and Japanese Government telegrams exchanged with the stations in the Japanese telegraph system.
2. Japan agrees to close all telegraph stations in Manchuria except those in the railway area and towns in the vicinity which are open to foreign commerce.
3. Japan agrees to pay China a royalty on telegrams transmitted solely over the railway lines and the Japanese connecting lines.
These are more favourable terms than Japan has hitherto offered, doubtless due to the action of the British Foreign Office, and Mr. Dresing considers that a basis of agreement on these lines may possibly be arranged.
He understands that telegrams accepted at the Japanese offices in Manchuria will be confined to local telegrams exchanged between Japanese Railway offices and terminal telegrams exchanged with Japan.
Until Japan defines the class of traffic which she stipulates shall be transmitted over the Sasebo Dalny and Dalny--Chefoo cables, we are unable to say to what extent our interests would be affected by an agreement based on the above proposals.
Mr. Dresing does not propose to conclude an agreement until after the Telegraph Conference at Lisbon has taken place, as he considers it advisable first to discuss details with the other parties concerned. Mr. Dresing and Mr. Chow Wan Pang have been appointed to represent China unofficially at the Conference. They are leaving for Lisbon in a few weeks hence, and will there meet Japan's Delegates and the representatives of the two Companies.
Prolonged negotiations have taken place at Tôkiô between the Northern Company and the Japanese Administration. The Northern Company agreed to withdraw their protest against the laying of the Sasebo-Dalny cable, and to give their consent to the laying of the cable between Dalny and Chefoo, subject to China's consent being obtained, provided that Japan would enter into an arrangement regarding terminal traffic exchanged between China and Japan. The negotiations have, however, been fruitless, and are now in abeyance, owing to the unreasonable terms demanded by Japan.
Russo-Chinese Convention.
A new Telegraph Convention between Russia and China was concluded in October 1907, in which Russia agreed-
1. To hand over to China all telegraph landlines erected by Russia in Manchuria other than railway landlines;
2. To pay China a royalty on telegrams transmitted over the Russian Railway landlines in Manchuria;
3. That telegrams transmitted over the Russian Railway telegraph lines shall be confined to terminal telegrams exchanged between Manchuria and Russia. Telegrams for Europe and America accepted at the Russian Railway offices in Manchuria will be handed over to the nearest Chinese telegraph station.
4. That the Russian Railway telegraph lines will not exchange with the Japanese Railway lines any other than service telegrams.
As Japan still retains ten telegraph offices in Manchuria outside the railway area, Russia is now dissatisfied with the terms of the above-stated Convention, and has recently given China twelve months' notice of her intention to determine the same.
We have not a copy of this Convention.
Agreement between Germany and China.
An Agreement made between Germany and China came into force in July 1907, whereby it was agreed:
1. That when both of the Chinese Administration's cables between Chefoo and Taku are in working order, one of the said cables will be placed at the disposal of the German post offices at Chefoo and Peking for four periods of thirty minutes each day for the transmission of bona fide German Government telegrams. When one cable is interrupted, the time will be reduced to two periods of thirty minutes.
2. During the interruption of one of the German Administration's cables, the Chinese Administration will transmit German Government telegrams free of charge between Shanghae and Chefoo.
3. During the interruption of the Chinese Administration's Shanghae-Chefoo cable, the German Administration will place the Shanghae-Tsingtau-Chefoo cable at the disposal of the Chinese Administration, provided that the cable is not occupied by special German traffic.
In such cases a fixed charge will be paid to the German Administration for all traffic transmitted over the said cable, excepting Chinese Government telegrams and telegrams terminating in China and exchanged between China, on the one side, and Europe, America, and Russia, on which no charge will be levied.
4. The German Administration undertakes not to fix lower rates for their Shanghae-Tsingtau-Chefoo cable than those established by the Chinese Administration. They further undertake not to compete with the Administration, and to pay the latter half of their receipts for all traffic exchanged by their cable between Shanghae and Chefoo originating and terminating at these places.
The Chinese Administration have communicated to us several extracts from the Chinese-German Agreement, but we have not a copy of the Agreement.
Negotiations between France and China.
The Convention made between France and China in 1888 for the exchange of telegrams between the Tonquin and Chinese land lines has been prolonged by a supplementary Article signed on the 31st December, 1907, which contains a clause to the effect that the Convention can be terminated by either party on giving six months' notice.
The protracted negotiations concerning the French cable from Tourane to Amoy have been fruitless, and are at present in abeyance owing to France maintaining her demand for permission to extend the cable from Amoy to Shanghae, a demand to which China has declined to accede on the grounds that there is no necessity for such a cable, which would be a competing line with the Administration's land line, and that if it should eventually be required, China herself would lay the cable. It was explained that China was treating France exactly as she was treating other Powers, who were not allowed to extend their cables beyond the landing-place originally chosen.
We are informed that if the French cable is extended to Shanghae, France intends to lay a cable from Shanghae to Vladivostock; this would be highly detrimental to the interests of the Extension Company, as it would establish a competing route to Europe.
Should your Excellency at any time desire further information on telegraph affairs, I shall be glad to communicate the same.
I have, &c. (Signed) W. BULLARD,
Manager in China.
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