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In May 1910, the Administration informed the Company that they were re-building their Canton-Kowloon Telegraph line along the railway track, and that it would enter territory leased to Great Britain at Tapoo: that, understanding the British authorities preferred that the portion of the line passing through British territory should be under British control, they asked the Company if they would undertake the supervision and control of it on the Administration's behalf and at their cost. An affirmative answer was given subject to the Hongkong Government approving the proposal, and the Company's Manager in China (Mr Bullard) had an interview with the Governor in August 1910, when Mr Bullard was informed that the Administration's proposal would not satisfy the Government, and that before any new lines could be erected in British Kowloon territory, the Administration must obtain sanction from the Hongkong Government.

The Administration were accordingly advised, and the question remained in abeyance until last July when the Administration informed the Company that the re-building of their new Canton-Kowloon landline would soon be finished and formally requested the Company, in accordance with the 1884 Agreement, to extend the British wires from the old to the new Kowloon frontier, and there connect them with the Administration's wires in a new Junction House to be provided by the Company. The Administration also stated that the increased Canton-HongKong traffic required three wires and asked whether the Company could supply the additional one.

Before replying to this request, the Company considered it necessary to obtain the views of the

(Hongkong

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