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were continued after 1930. Of course the continuation of the

agreements really meant a continuation of their present monopoly.

Speaking privately and quite frankly, Sir John was not sanguine

that the Companies would obtain such an extension of their

rights; but he wanted to get one if he could, and he wished, if

possible, to be supported in this. If the Chinese wanted their

loan, the instructions sent Mr. Bullard, the Company's representa- tive in Peking, were to meet their wishes provided the existing

agreements wore extended: the two things hung together, loan

and extension.

7.

These considerations were laid before the Post Oice

authorities who were prepared to acquiesce in the official support of His Majesty's Government being accorded to the

Companies if the Foreign Office were satisfied that it could properly be given in the circumstances without the danger of international complications.

8. From the above statement of the facts, you will observa that the Companies proposals at this point involved three distinct headings:-

(a) The continuance of the right to control and work the

existing cables between Shanghai, Chefoo and Taku:

and to work the new cable which the Chinese Administration

proposo to lay between Shanghai and Chefoo.

(b) The exclusive right to lay and work on behalf of the Administration any additional cables required by the traffic between Shanghai, Chefoo and Taku. (o) The continued right to vote the landing in China jof

cables from other countries.

0.

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