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old frontier to the new one, but never received any permission from this Government to retain its line over British Territory. By arrangement with the Eastern Extension Telegraph Company the Chinese Company occupied a portion of their building in the Island of Hongkong, and operated their telegraphs over the Eastern Extension Telegraph Company's Cable and their section of the line.

(b.) The Chinese Company which was thus allowed on sufferance to own part of a line without permission in British Territory and to maintain what in practice was a private telegraph office in Victoria was ostensibly a commercial concern, and the Chinese Government stated it to be such, though it was known that the Chinese Government exercised certain powers in regard to it. The Eastern Extension Telegraph Company on the other hand made their arrangements with this Chinese Company, and accorded to them the rights I have described, in order to obtain corresponding privileges elsewhere, but did not consult, even inform this Government of the arrangements concluded.

The Agreement between the two expired in 1903, but I hear confidentially from the Superintendent of the Eastern Extension Telegraph Company that it was formally extended by a new Agreement till the year 1930: again without reference or

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