COPY

(F 7691/30/16)

bp

The Bastern Extension Australasia and China

Telegraph Company, Limited,

Bectra House, Moorgate,

London, B.C.2.

22nd September, 1927.

Dear Mr. Mounsey,

Referring to my letter of the 12th July last I

beg to inform you that on the 6th instant this Company's

Buperintendent at Hongkong wired me as follows: «

"Governor has decided to no longer permit Chinese

officials whether representative of Peking or Canton

to have charge of Chinese Administration 'Telegraph

Office owing continual friction between North and South

Governments over the management of this office: and he

is desirous that Companies should take over the charge

of Chinese Telegraph Office in Hongkong at the earliest

possible date, with a working agreement with the Canton

Government and he would be prepared to render all

assistance possible in negotiations with the Canton

Goverment. Failing such agreement the Hongkong Govern-

ment were considering the closing of the said Telegraph

Office and the working with Canton only by wireless only

for time being.

To which I replied that:-

"If the Governor would take the necessary steps to

close the Administration's Office either as temporary

or permanent measure, the Telegraph Companies will be

prepared to undertake the working pending agreement

with the Canton Goverment.'

To this I received yesterday the following reply :-

*Governor

G.A. Mounsey, Esq., C.M.G., O.B.E.,

Foreign Office, 8.W.1.

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