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The Secretary of State in a telegram dated the 30th May, 1882, granted the British Company's application (letter informing them in 983/82) and stated that no concession should for the present be granted to any other applicant.

The Eastern Extension Company on the 14th August, 1882, reported that their new cable across the harbour was in working order.

On the 9th October the Wa Hop Company applied for permission to lay a cable direct from some point in Chinese Territory Victoria.

This application was forwarded to the Secretary of State on 10.10.82, the Governor reporting that the Wa Hop Company, wishing to control the end of the line, had refused to come to terms with the Eastern Extension Company to use their line.

On the 11th April, 1883, the Eastern Extension Company forwarded a copy of a provisional agreement signed on 31.3.83 between themselves and the Chinese Government. The Company had a concession to lay a cable up the Pearl River to Canton and had for some time past been in communication with the Wa Hop Company in order if possible to make a working agreement whereby one line should only be run between Canton and Hongkong. Negotiations failed, but the Wa Hop Company's concession was taken over by the Imperial Chinese Telegraph Administration. Under the agreement now drawn up the British Company were to be permitted to land a cable at the mouth of the Yangtse, to be connected there with Shanghai by a Chinese-owned land line. Half the Chinese office at Shanghai was to be rented by the British Company who were to have their staff there. In return, similar arrangements were to be made with regard to the Chinese Administration's line from Canton. "Should the Chinese Administration establish a telegraph

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