69
"Governor states that Lau Commissioner Telegraph
Administration Hongkong was dismissed on 20th July by
the Ministry of Communications who appointed Chen in
his place. Governor refuses recognise Chen and there-
fore the post of Commissioner is now vacant although
Lau remains in charge of the office. Governor now
intends to notify Lau he must surrender charge of the
office and invites the Companies to assume the manage-
ment retaining in the first instance the existing sub-
ordinate staff pending reorganisation if necessary.
"If the Companies agree Governor will communicate
with the Canton Government and endeavour to negotiate
the accounting arrangements between the Companies and
the Canton Authorities.
"As the working of the Chinese Telegraph lines in
Kwantung can only be secured through the Canton authori-
ties, the Governor is of opinion it would be essential
that the working agreement should be with Canton and not
with Peking.
!
This would create an awkward and a delicate situa-
tion for the Companies vis-d-vis the Peking Administration,
and it might also occasion retaliatory action on the latter's
part in the matter of the Companies' working of the Cable
Stations in China, Amoy, Feochow, Shanghai, Chefoo, Tientsin
and Peking.
Perhaps a way out of the difficulty would be for the
Legation at Peking to obtain the consent of the Administratior
to appoint an English member of the Cable Compa ies' staff as
Commissioner at Hongkong, allowing the working of the office
to be carried on as proposed by the Governor, 1.e. with the
Administration's