This Document is the Property of His Britannic Majesty's Government.]

C. O.

[December 24.14136

AFFAIRS OF CHINA.

CONFIDENTIAL.

[44972]

No. 1.

281

SECTION

(Rect 4 FET 09

Eastern Extension Australasia and China Telegraph Company to Foreign Office.--(Received December 24.)

Dear Sir Francis,

Electra House, Finsbury Pavement, London, December 23, 1908.

YOU are probably aware that the Agreements recently negotiated at Tôkiô for the settlement of the Manchurian and other telegraph questions pending between the Chinese and Japanese Governments were duly signed, and that the Chinese Repre- sentatives are now in Peking with a view to obtaining the formal approval of the Agreements by the Chinese Government.

The only official communication we have received on the subject is a letter from the Chinese Telegraph Administration, a copy of which is enclosed herewith, purporting to give particulars of the Agreements as they affect our interests. These particulars are, however, so meagre and obscure that it would have been very difficult, if not impossible, for us to have clearly understood what had been actually arranged if this had been our only source of information. Fortunately, however, through the courtesy of Mr. Dresing, we were given, privately, copies of the three Agreements, and by this means were made fully acquainted with the arrangements entered into. Copies of these Agreements are forwarded herewith for your confidential information.

You will observe that, although provision is made for the two working Agreements remaining in force until they are altered or abrogated by mutual consent, the main Agreement is without any term, or provision for termination, and could, therefore, be put an end to at any time if it were not for the arrangement set forth in Article 3, which, in the opinion of our legal adviser, constitutes an implied contract for fifteen years. Consequently, the main Agreement cannot be terminated earlier, and, as the two working Agreements are supplemental to and dependent on the niain Convention, all three Agreements must continue for fifteen years.

There are other points in connection with the Agreements which are not so clear or satisfactory as they might be--such as the definition of traffic to be transmitted over the Kwantung-Chefoo cable, the limitation of traffic which may be exchanged between the Japanese and Chinese systems, and the absence of reference to the Sasebo-Dalny cable, and we are now in communication with the Great Northern Company as to what action, if any, might be taken to safeguard the Companies' interests in regard thereto. We could not, however, make any particular reference to the Agreements themselves unless copies were communicated to us officially, and, as a direct application from the Com- panies to the Chinese Telegraph Administration would probably lead to a refusal, might I suggest that the British Minister at Peking, or the British Ambassador at Tôkið, should be asked to endeavour to obtain copies for the use of His Majesty's Government. I understand that the main Convention is to be submitted to the Japanese Parliament for approval, but not the working Agreements.

The Russian Minister at Peking has, apparently, already been made acquainted with the terms of the Agreements, and, as will be seen from the inclosed confidential telegrams from China, he appears to be satisfied with the basis of the arrangement, and inclined to allow the original Russo-Chinese Railway Convention to remain in force, but will come to a definite decision on the subject shortly.

Yours faithfully, (Signed) F. E. HESSE,

Inclosure 1 in No. 1.

Eastern Extension Australasia and China Telegraph Company, Shanghae, to Hend

(Confidential.) (Telegraphic.)

[2049 aa-2]

Office, London.

Shanghae, December 13, 1908. CHOW-WAN-PANG and Dresing arrived Peking last night. Before departure, Dresing mentioned Russian Minister wired him anxious to conclude new Convention

B

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