18001/1911

27507/1911

Briefly stated, the grounds for the attitude of the

Hong Kong Government were as follows:

(1) The companies had renewed their agreements with the

Chinese Government without reference to the Colonial

Government and there appeared no good reason why

the interests of the Government should be made

subservient to those of the company.

(2) That the ownership of telegraph lines within the

colony was highly undesirable and created a position

without precedent.

(3) In time of war Hong Kong would have to commandeer

the line, in which case they might be called upon to

meet a claim from the Chinese Government for

compensation.

(4) The colony needed fresh revenue.

The traffic on the

existing line was considerable and a profit might

be made on it for the colony if worked and owned

by the Government or leased to an English Company

with a royalty or messages.

His Majesty's Minister at reking in commenting upon the

new proposals gave a resume on the negotiations between the

ор

companies and the Chinese Government remarking that, much

as he appreciated the distaste of the Colonial Government

for the continuance of the existing conditions, and their

desire to profit by what in normal circumstances would be a

natural source of revenue, he could not avoid the conclusion

that the solution proposed by the Governor of Hong Kong would

be nothing more than a unilateral abrogation of existing

engagements whose operation extended beyond the limits of

British territory, and would certainly lead to measures of

reprisals against the company by the Chinese Government.

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