CO129-384 - Public Offices - 1911 — Page 270

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expediemy of transforring the telegraph line to the rail-

way and the fact that the Chinese Telegraphs have become a

national undertaking make it desirable to arrive at a clear

widerstanding on the subject with the Eastern Extension

Telegraph Company and the Chinese Government:

but fully as

I appreciate the distaste of His Excellancy's Govortment

for the contimance of the present conditions and their

desire, in the financial situation of the Colony, to profit

by what in nomal circumstances would be a natural source

of revenue, I am unable to avoid the conclusion that the

solution advanced by His Excellency would not constitute

more than an unilateral abrogation of existing arrangemente engagements

whose operation extende beyond the limits of British terri-

tory, and would certainly lead to measures of retaliation

against the Company by the Chinese Government,

So far as I can see all we can reasombly claim

as against the Chinese is that the terminal station should

be removed to the frontier. The moro delicate question of

the office in Hongkong is one upon which the Chinese Coverty-

ment are likely to take a firm stem, and it is improbable

that without disproportionate pressure they could be

induced

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