CO129-488 - Governor Sir Stubbs - 1925 [1-7] — Page 348

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The

Un-

Companies that we did not remit any money to them. Kwangtung Administration is not then to blame for the present trouble, though we are suffering badly through the non-payment of the cable charges. Not only did the Chinese Office misappropriated our cable money but they had also spent the money due to us from the Cable Companies and that the Cable Companies paid to them. You will agree that such a state of things should not be allowed.to continue. fortunately it would unless we could induce the Cable Companies to deal direct with us instead of through the Chinese Office. The Cable Companies, however, insist on dealing only with the Chinese Office and refuse to deal direct with the Kwangtung Administration, excepting ita Shameen Office and sven in this case only partially. We consider this as being absurb, and especially as the Chinese Office inform us that they take no responsibility for the Kwangtung Administration and act only as an intermediary and an outsider.

On the 10th inst. I presented the Superintendents of the Cable Companies a letter from the Director of the Kwangtung Administration, in which I was empowered to negociate with them for a settlement on the following

matters:-

1: To deal direct with us instead of through the Hongkong Chinese Telegraph Office.

2. To pay direc to this Administration the inland further transmission charges on inward international

traffic?

3. To settle at Canton the account on Joint Purse Units

instead of at Shanghai.

I may explain here that all messages to and from Europe and America are considered as Joint Purse and the revenue so derived is divided among the Chinese Telegraph Administration and the Cable Companies each receiving one-

third of it.

4.