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2.
At the beginning of June it was pointed out to us that
under an Agreement dated 11th July 1896,
(Article I, para 4), countersigned by the
British and Russian Ministers at Peking,
Copy of Agree- ment enclosed for confiden- tial informa- tion.
the Chinese Government had to be consulted.
If the Hongkong rate were reduced below the Chinese
rate,it might lead to packing, and as the Chinese had agreed
not to reduce their rate,the Agreement was made reciprocal
for Hongkong.
In order to comply with the above quoted Agreement.
we wired to the Chinese Government on the 17th June,asking
for their consent to the 44d Press rate between Hongkong and
Great Britain. We had no reply to this until the 7th inst.,
when we received the following message:-
"Director General replies regret unable agree pro-
"posed press rate fortysix threequarter centimes as intro-
"duction such rate would greatly affect press traffic
"between China and Europe and give cause for dissatisfac-
"tion,stop. Suggests instead introduction uniform press
*rate eightyfive centimes soonest possible between China
"and Hongkong one side and Europe other side both via Russia
"and via Eastern,stop. Administration also willing "introduce corresponding reduction for America, stop.
"Director adds it should be clearly understood that above "proposed rate must be agreed to by all parties concerned