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induced to accept more than some formula fixing its status

as purely unofficial.

The Chinese Administration apparent-

ly possess the right of sending messages without charge from Victoria to the old Kowloon frontier and, so far as Chine

is concerned, all that Hongkong could claim would be in res-

poot of traffic along the line between the old and new from

tiers. Any further modification of rates would have to

be made in conjunction with the Company, whose important

interests entitle them to be consulted as a prelimimry

to any negotiations.

I took advantage of an interview on the 19th.

instant with Sheng kung pao to sound him on the subject, an

opportunity for doing so having presented itself in connec-

tion with the Canton-Kowloon Railway Working Agreement which

I was discussing with His Excellency. After advorting to

the undesirable amomly presented by a Chinese owned line

in British territory, I informed him that the conversion of

the Telegraphs into a Govoriacent concern had changed the com

plexion of the situation and had raised the question of the

removal of the Chinese office from Hongkong.

It was, I

dimintained, obviously incompatible with the status of long-

kong

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