33
canvassing, which meant the distribution of their own forms
and solicitatian of business generally.
At a later stage in the negotiations the Companies
would introduce as a lever in the negotations the financial
aspect of the question, namely, the debt (amounting to some
nillions of dollars) outstanding to the Cable Companies on
account of the old loan and the cost of the Northern Coast
Cables. The Companies were prepared, at the proper time,
to offer to consolidate this debt and lend a few more
millions of dollars (with proper security if possible, but
otherwise in the last resort to be regarded as axxarixaf
the cost of a satisfactory settlement). The Chinese Tele-
graph Administration had talked of raising a $10,000,000
loan to redeem their debt to the Cable Companies, but it
was most improbable they would be able to do so, and, being
hard pressed for funds, this financial lever was likely
sooner or later to be an important consideration.
After Mr Procter had had to leave Sir M. Lampson
owing to the arrival of mother caller, I had a further con-
versation with him, in which he made the following two points.
Firstly, they, the Cable Companies, had got the impression
that the Foreign Office and the Legation were no longer sup-
porting them as formerly, though from his most recent infor-
mation from London he felt reassured on this point.
I AS-
sured him most positively that there was nothing in this ;
it was all a matter of tactics and expediency as to what
action we took with the Chinese. The latter unfortunately
no longer "did as they were told" on Legation action and
diplomatic pressure, if wrongly applied, might nowadays
merely have the effect of stiffening them;
and the Foreign Affice felt that the perpetual lending
rights ngremnant argument, admittedly merely an argument,
both H.M.Minister
WES