Enclosures 5 & 6.

44

5.

The following day (2nd September) Mr. Chen

accompanied by Mr. N. C. Young, who described himself as the

new Treasurer of the Administration, called at the Colonial

Secretary's Office having previously paid their respects at

Government House, and were informed by the Assistant

Colonial Secretary, in the absence of the Colonial Secretary,

that the steps taken to secure possession of the office were most improper and that, pending the decision of this Government, there must be no further disturbance of the

status quo.

6.

On 3rd September Messrs. Deacons, Solicitors,

made formal application to the Government for approval of Mr. Chen's appointment. Copies of their letter and of the reply which I caused to be sent are enclosed.

7.

I have now been informed by the local

Managers of the Eastern Extension Telegraph Company and the Great Northern Telegraph Company, who have been in communication with their Head Offices, that, if I take the necessary steps to close the Office of the Chinese Administration, either temporarily or permanently, the Companies will be prepared to undertake the working pending an agreement with the Canton Goverment as recommended in

my telegram.

enclosed.

8.

Copy of the letter from the Companies is

The service given by the Chinese Telegraph Administration here has been anything but satisfactory.

I enclose a letter forwarded by Mr. Shenton fran a Shame en resident also a report from the Electrical Engineer confirming this complaint of the inefficiency of the land- line as at present run. The latter also sets out the

Enclosure No.7.

Enclosure No.8. Enclosure No. 9.

present

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