CO129-507-9 Chinese Telegraph Office- Hong Kong- transfer to Cantonese control 4-1-1928 - 20-7-1928 — Page 91

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Cantonese authorities were insisting upon their chinese

version of the title, which, literally translated, is:- "Chinese Merchant appointed by the Provincial Government of Kuangtung as Superintendent of the Chinese Telegraph Office established in Hong Kong", because in this form the title would register a diplomatic triumph over Peking.

As regards the proposed nominee, Mr. Kong Siu-lui is well known in Hong Kong. He is a Hong Kong-born British subject. He is a bona fide merchant. His brother, Mr. Kong E-sun, is a Justice of the Peace in this Colony. His

appointment would be acceptable to this Government and, as he is well known to Mr. Liang Shih-yi, it is likely that he would also be acceptable to the Peking Government, provided the post is made, as I wish it to be, definitely

commercial in character. After discussion with Mr. Brenan it appeared that the curious position had arisen that the Peking Government, although believing Mr. Lau Cheuk-pan to be embezzling its funds, preferred to retain him in

office rather than that a nominee of the canton Government

should be appointed; while the Canton Goverment, although anxious to oust Mr. Lau, would prefer to retain him in office rather than accept my translation of the English title or have the office closed. The singular result has thus come about that both Peking and Canton desire to maintain the status quo, i.e. retain lar. Lau in office for the time being. Thus, for the time being both Canton and Peking are estopped from making complaint against the Hong Kong Government for leaving Mr. Lau in office. Moreover, the more inefficient this chinese Telegraph Office becomes under the management of Mr. Lau, the sooner

will