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This Document is the Property of His Britannic Majesty's Government
258
CHINESE LOANS AND CONCESSIONS.
CONFIDENTIAL
F 1347/181/10]
No. 1.
[April 8.]
SECTION 2.
Sir J. Denison Pender to Mr. Wellesley. (Received April 8.)
Dear Mr. Wellesley,
Finsbury Pavement, London, April 6, 1921. IN the revised instructions which the Eastern Extension and Great Northern Companies are sending to their representatives in China respecting the approaching negotiations with the Chinese Telegraph Administration for prolonging our working agreement, &c., with China, we are strongly emphasising the importance, from an international point of view, of the working by the companies of the Shanghai-Chefon- Taku cables and the special land-line wires between Taku, Tien-tsin and Peking being continued beyond 1930.
It will be remembered that during the Boxer troubles in 1900 telegraphic communication to the north of China was entirely controlled by the Chinese, who used their privileges for their own political purposes and caused the International Powers great trouble and anxiety when their representatives at Peking were in great danger and there were no independent means of communicating with them.
Owing to this unsatisfactory state of things, the International Powers having Legations at Peking contemplated the laying of their own national cables to protect their special interests. This large unnecessary expenditure was, however, averted by the Eastern Extension and Great Northern Companies arranging with the Chinese (with the approval of the British Government) to provide the existing international cables beyond Shanghai, which met the requirements. The cables were to belong to the Chinese, but to be controlled and worked by the Eastern Extension and Great Northern Companies until the companies' expenditure was recouped by half-yearly instalments, payable by the Chinese, spread over a period of years expiring at the end of 1930. Option was given to the Chinese to terminate the arrangement in 1925 on payment of the balance then remaining due to the companies.
During the interviews Mr. Eriksen had with the companies when he was in Europe last year, it was clearly indicated that the Chinese Government wish to exercise the option of taking over and working the cables in 1925. Should this eventuate there would no longer be any international communication to the north of Shanghai nor to Wei-hai Wei, and my company would be unable to efficiently fulfil its obligations to the British Government to transmit their telegrams to the local officials by British employees only.
In these circumstances I should be glad if you could see your way to instruct the British Minister at Peking to support the companies' negotiations in their endeavour to get the working agreements with China extended for a further period beyond 1930. Should you wish to see me on the subject, I should be happy to call at the Foreign Office at any day and time that you might conveniently arrange, except Tuesday and Wednesday of next week, when I shall have many board meetings to attend.
Yours sincerely,
J. DENISON PENDER, Chairman,
The Eastern Telegraph Company (Limited), The Eastern Extension Australasia and China Telegraph Company (Limited).
[6061 h-2]
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