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The arrangement which we thought was

going to solve this problem has now been upset, as

the former Superintendent, Lau Cheuk Pau, has sent

a little money to Peking and persuaded them to

keep him.

Chen Ching Wen is therefore returning

to Peking, and the position is practically as it

was before the Minister of Communications proposed

to dismiss Lau Cheuk Pau.

The Governor therefore proposes to

close down the telegraph office, but I do not

quite understand why. As there is no question

of recognising a new Superintendent, there is no

need for difficulties with Canton to arise, and

it is not clear why the previous state of affairs

should not continue. It was certainly unsatisfactory,

but the closing of the office would have many

inconveniences and would hardly be an improvement.

I cannot discover in these papers any clear reason

for the Governor's anxiety to close down the office,

and I think we ought to get his reasons clear before

arriving at a decision. Possibly, Mr.Southcombe

may be able to help, and a copy of this might be

sent to him asking for his observations on that point.

If it is not decided to close down the office, there

is just a possibility, if the relations with Canton

continue to improve, that the Cantonese authorities

will agree to the transfer of the office over the

frontier, to which they previously objected.

? Write to M Santhom as propored

5. Came.

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6.2.28.

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