CO129-378 - Governor Sir Lugard - 1911 [6-7] — Page 242

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not consulted, but was not even informed of the renewal of the

Agreement, which looking to the immense bulk of the business

between Hongkong and Canton, has now become a very valuable one.

On the other hand the existence of this Chinese Office in

Victoria even before it became without quibble a Government

Department has been a source of continual annoyance to this

Government owing to the tendency of the Official in charge to

assume a position and powers in political matters. And as I

have pointed out to you I consider that it is possible that in

times immediately preceding a political crisis it might form a

source of danger.

The Company has enjoyed privileges con-

-sequential on their agreement for upwards of 30 years, without

compensation to the taxpayers of Hongkong, and I submit that

the "substantial quid pro quo" which His Excellency Sheng

claims is a latter for the Company to deal with. I earnestly

hope that as a question alike of justice (from a financial point

of view) and of political expediency, the Ordinance of which I

submitted a draft to you in my Despatch of 13th. March, 1911,

should be enacted forthwith and thereafter the telegraph line

should be carried along the Railway and into llongkong by means

of the Government Cable, and that the Telegraph Office should

either be operated as a Government Department or conducted by

the