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5.
Cormenting upon these proposals the General Post Office
understood them to mean that the Companies would cease after
1930 to have a veto on the landing in China of cables from other
countries, but that they would have the exclusive right (in
addition to continuing to work the existing cables between
Shanghai, Chefoo, and Tau, and the proposed new cable between Shanghai and Chefoo) to lay end work on behalf of China any additional cables required for the traffic between Shanghai,
Chefoo and Taku. Such an arrangement, if this interpretation of
the intentions of the Companies' proposals was correct did not
seem to involve any monopoly to which reasonable oxcaption
could be taken.
6.
As the question of monopoly was not entirely clear, it
was thought advisable to ensure that this roading of the
Companies intentions was correct and that they were indeed prepared to abandon after 1930 their general veto on the landing of other cables in China: a letter, dated April 26th, was
accordingly addressed to Sir J.Pender but in his reply, this
particular point was passed over in silence. In order to dispose
of all further doubt the point was then put to him verbally on
Hay 6th and on that occasion he frankly admitted that he had
expected further enquiry, and that he had purposely refrained
from putting on paper anything which would imply that the
Companies were abandoning the prospect of their monopoly being continued after 1930. The essence of the position was as
follows: the present negotiations had arisen from an alleged
desire on the part of the Chinese Telegraph Administration to 000 puo, obtain a loan of one million pounds from the Companies; the
letter were ready to give it provided their existing agreements
wezo/