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5.
On the point of finance, Sir John Pender mentions that the Chinese Government appear to have pledged the whole of its telegraph revenue already: (1) to the companies in respect of previous transactions and (2) to Japan under loans which have been recently furnished by that country; and it may be convenient to roospitulate the main facts bearing on this and also on the political napeet of the whole matter of tele,raphy in China.
4. Jable Tols Taphy
As you re nware, there have been
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a number of intricate agreements between the eastern extension Telegraph Company (British), the Great lorthern (Danish), and the Chiness Coverment. In 1601, the Danish company obtained exclusive landing rights in China in return for services rendered. Later, the British company became their partners in these privileges, aremment, and eventually in lux, the two companies simed an known as the Joint Purse Agreement, under which they have noted
by a later agreement between the two companies jointly in China. and the Chinese Telegraph Amini tration of January 23rd 1099, the exclusive cable rights of the companies were prolonged until 1916,
no other party will be allowed and the proviso made that or otherwise to establish telraph connections which might create competition with or injure the interests of the existing lines
......". In 1900 this belonging to hina or the able companies.... proviso was extended until December 1930, and it was further confirmed in an areament of 1913, and in an exchange of letters btween the companies and the Chinese Government in August 1914, suplementary to the Landing Richts Agreement of 1913 between China and Japan. But the companies' monopoly has not been rigidly enforced. By an arrangement in 1904, an American company (Pacific Jable Company) and a Jerrian company (the Deutsch-Niederlamlische Tele Taï en lesellschaft) were admitted to the Joint Purse
greement and now have landin; rifts at Shanghai; and Japan
acquired....
ao:uired landing; rights in 1913.
5. Lazi dire Tu), growly 4- In 1911, the Chinese Jovernment took over control of all officially sinugod land telwyrapho in China, sul to muat the expenditure involved they borrowed £500,000 from the British and Danish Cabl• Companies, who were given a lion on certain cluases of land tulograph traffic as security. Apart from the lion, there would in ordinary circumstances be no diroat British interest. But in April 1916, Japan sonnluded ner so-called "Tulegraph Loan" with China for Yon 24, 000, 000 (2,000,000 starling at normal exchange ) for a term of five years secured on the
Chinese obligations whole wired telegraph system of thina:
to the dublu companies were apresuly recoɛmised, but there is a simiï'iount provision (artiole«10 and 11) that if China alters her arrun¡monto with the anble companies or the Chinese Telegraph Akainistration contracts further lowns abroa China will firat consult Japan. In forwarding a copy of the agemont for this loạn, the comment of His Majesty's Minister
oking was as follows:-
"While the prior liens of the seatern äxtension and "Great Northern natunios on the telugraph revoimea under "the wrements of 1900 ani 1911 are specifically recomiend "by artisi 9, the Jaysanese obtain by article 11 a first "uption on all futura forein loans required by the Chinese "Telegraph Administration for sira telegraph pur osea, and "by amex 2, a firat option on the nomination of forvim "experts and on the supply of i sorted telugraph mutorial.
by obtaining these options, the Japanose have succeeded in
"gaining
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