CO129-505-6 Chinese telegraph office at Hong Kong- transfer to Cantonese control 8-7-1927 - 29-12-1927 — Page 71

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"Governor states that Lau Commissioner Telegraph

Administration Hongkong was dismissed on 20th July by

the Ministry of Communications who appointed Chen in

his place. Governor refuses recognise Chen and there-

fore the post of Commissioner is now vacant although

Lau remains in charge of the office. Governor now

intends to notify Lau he must surrender charge of the

office and invites the Companies to assume the manage-

ment retaining in the first instance the existing sub-

ordinate staff pending reorganisation if necessary.

"If the Companies agree Governor will communicate

with the Canton Government and endeavour to negotiate

the accounting arrangements between the Companies and

the Canton Authorities.

"As the working of the Chinese Telegraph lines in

Kwantung can only be secured through the Canton authori-

ties, the Governor is of opinion it would be essential

that the working agreement should be with Canton and not

with Peking.

!

This would create an awkward and a delicate situa-

tion for the Companies vis-d-vis the Peking Administration,

and it might also occasion retaliatory action on the latter's

part in the matter of the Companies' working of the Cable

Stations in China, Amoy, Feochow, Shanghai, Chefoo, Tientsin

and Peking.

Perhaps a way out of the difficulty would be for the

Legation at Peking to obtain the consent of the Administratior

to appoint an English member of the Cable Compa ies' staff as

Commissioner at Hongkong, allowing the working of the office

to be carried on as proposed by the Governor, 1.e. with the

Administration's