Copy.

(F 2557/325/1c).

NO DISTRIBUTION.

Decypher.

Sir M. Lampson (Shanghai, on tour). 8th May, 1930.

D. 12.40 p.m.

9th May, 1930.

R.

9.00 a.m.

9th May, 1930.

No. 170.

45

Cable Company's negotiations.

I discussed the present position with Eastern

Telegraph Company and appointed representatives on May 6th.

Chinese who at the outset of formal negotiations put forward

impossible demands are now in informal discussions showing

themselves slightly more reasonable and Company's

representatives seem fairly confident of being able to

reach a compromised settlement in due course.

minutes of meeting follow by post.

Copies of

At preliminary interview Eastern Telegraph

Company's representative alone represented that it was of

great importance to cable companies to know for their

guidance and possible use in negotiations what the intentions

of the Government of Hongkong might be towards the question

of retention of Chinese telegraph office in the colony after

the end of 1930 when agreement between companies and Chinese

telegraph administration providing for its functioning there

expires. I gather they want in pressing for maintenance of

their rights of direct dealings with public in China to use

them as a lever. I said that I assumed that if Chinese

telegraph office were allowed to continue to function in the

colony it would only be on conditions laid down by Clementi

but

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