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haa also been under consideration by the Companies and

147

ue Administration, and the latter recently advised the Companies hat they had contracted with a Japanese firm in Yokohama for the anufacture of a thanghai-Chefoo Cable on their behalf. They

so asked for the Companies' assistance in the testing, transport 4 laying of the Cable.

When the German Goverment Cable between Shanghai, laochow and Chefoe was able to transmit the Traffic during sterruptions of the existing Cable, the need for a duplicate raunication was not seriously felt, but now that the German ible is no longer available, a second Cable is really required

meet Traffic requirements.

The Administration have also proposed that the Companies

ould grant the Chinese Government a further Loan of at least

,500,000 at 5% Interest, repayable by Instalments spread over

period of years. In consideration of this financial assistance,

je Chinese Government would be prepared to extend the Ainis-

etion's Agreements with the Companies, and the latter's monopoly

China, for an additional twenty years beyond 1930, when they

uld otherwise expire,

The Chinese Government appear to have no tangible

curity to offer to the Companies for the proposed loan, as the

ole of their Telegraph Revenue is already fully mortgaged; first

the Capanies in respect of the International Cables supplied

them in the North of China during the Boxer troubles, and the

bsequent Loan of £500,000 made to the Chinese Goverment, with

le approval of the British Goverment in 1911; and, secondly,

the Japanese, who have recently granted to the Chinese

verrment, a further Loan of 15,000,000 Yen, and agreed to the

riod for repaying the Loan of 20,000,000 Yen, arranged in 1918,

ing extended until 1934.

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