CO129-488 - Governor Sir Stubbs - 1925 [1-7] — Page 365

351

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traffic under the control of the Telegraph Companies to meet his Office expenses, which sum is to be recovered from the Peking Administration; and that he would then waive his claim to the inward transmission charges. However, at the meeting he said that the request for the use of the $5,000 should not be considered in connection with the inward transmission charges, that they should be kept separate and as having no bearing whatsoever one on the other. This shows that Mr. Au is not going to play fair by us.

Again in connection with the above the Superintendents of the Telegraph Companies informed their Shanghai Offices that Mr. Au said that the revenue on traffic between Hongkong and inland places amounted to only a few hundred dollars, and were told that under such circumstances Canton should agree to grant him a portion of the inward transmission charges. Mr. Au was informed of this at the meeting; and I gave him the assurance that we would meet any legitimate deficiency in his office expenses. However, he replied that he would not accept any assistance from us! He is very inconsistent, and is unable to keep his words. I believe he is only trying to get us into difficulty regarding the payment of the cable charges. We have conced- ed him everything possible and we can promise no more.

You will no doubt agree that the Hongkong Office is proving itself a nuisance and is trying to poil us in every way. We would therefore request you to expedite the removal of the office or to facilitate our taking control of it either fully or partially so that it may not act.detrimentally to us and also that we may be the better protect our interests and provide a more efficient Telegraphic Service in South China.

Considering that we take full responsibility

for the payment of all cable charges beginning from this year, that we have not failed to meet our obligations, and

we