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however, the repairs would certainly cost money, which would have to be provided from some source or other.
A long and inconclusive discussion ensued. The Director General and his advisors kept harping on the desirability of keeping the agreement (of 1884 under which the Chinese Telegraph Office is maintained in Hong
Kong in connection with the arrangements between the Chinese Telegraph Administration and the Cable Companies) in existence, and the necessity of removing the present Manager, who was charged with misappropriating funds.
Sir C. Clementi explained again and again the difficulties in which he and his Government were placed. The agreement of 1884 was made between two friendly
Governments, Great Britain and China; it had broken down
through the force of circumstances, in that China was
disrupted and at Canton another Government existed which
was bitterly hostile both to Hong Kong and to Peking. The Cantonese protested vehemently to His Excellency against his recognising a Peking appointee to the Chinese Telegraph Office in Hong Kong; they would like to put in their own
man, but that he could certainly not allow in view of
their hostility. Hong Kong was being made a pawn in Chinese internal politics. His Excellency was determined that that could not be allowed to go on.
The usual veiled threats were made by the Chinese representatives in regard to the difficulties which might ensure for the Cable Companies if the Chinese Office in
Hong Kong were closed, i.e. that it might affect their
position in connection with their offices at Shanghai and other places in Chinese territory.
Eventually the question of Mr. Chen proceeding to Hong Kong was raised. The Director General argued that it was not impossible that they, i.e. his administration,
might