The Archive · 1885

Oficial Papers

(Lranslation.]

His High Excellency The Minister of the Interior the Adjutant General Tatascuerr. From the Founders of the Russian-Japanese-Chinese Telegraph Line, the Councillor of State C. F. Tretcex, the Merchant H.G. Enscuses, and the Consul General P. Pattisen.

In consequence of the request of Your High Excellency dated the Ist August 1869 (No. 166) we have herewith the honor to inclose the conditions, based upon the Most High stipulations dated the 19th July 1869, upon which we are prepared to accept a Concession for the establishment of Submarine Telegraph Connections between Russia, China, and Japan, At the same time we take the liberty as an exact elucidation of these conditions to submit the following to your High ad 1.—As neither we nor the Telegraph Administration have closely examined the local conditions of Possietta Bay with re-Eublo there' we cannot unconditionally ard to the question of landing a Telegraph accept Possietta Bay as a landing point, as the durability of a Cable depends upon the right selection of the landing place.

The same as regards the landing places on the Coasts of Japan and China; and it must further be considered that the hostile disposition of Japan has the effect at present of making the Japanese harbours highly unsafe for Europeans and that therefore the establishment of Telegraph Stations will be almost impossible, In China, on the other hand, the landing of the Cables is dependent upon the special circumstance that the Chinese Government only allows the landing of Cubles in those settlements which have by existing treaties been set aside for the usc of the Europeans. If therefore these settlements should not be found suitable for the purpose, the Chinese Government will have to be influenced to take the necessary allowances; and this again can only be brought about by the different states interested.

According to our view, the Russian Government must take upon themselves the obligation of obtaining these allowances by diplomatic means; as the whole undertakin nual be of grent political and commercial interest for Russia, and as it would therefore be a political mistake to leave us, the founders of a Russo-Danish enterprise, who can only exist in China and Japan if protected by Russia, either without that protection, or to compel us to seek the protection from a foreign Government, for instance England. In the latter case the whole undertaking would not only become dependent on that foreign Power, but it would in particular just contribute to raise the commercial and political influence of that Power in China ad 2.—) us experience has shown that the difficulties in establishing Submarine Telegraphs only consist in the laying of the cables and in the raising of the same in case of eventual interruptions. This work constitutes the main part of the cost of the undertaking in connection with the keeping up of a strongly manned steamer for the supervision of the cable. In Europe and in fact in all countries where a mercantile marine exists, ships and crews can at any time be hired; consequently the timely laying of the cables, as also the repairsafterinterruptions, is always secured. In China and Japan this is however utterly impracticable. The company must, therefore, if they will not share the fate of the Telegraph Company for the Red Sea, who had to abandon restoring their interrupted cable on account of the too heavy expenses to be incurred, be obliged to constantly keep their own ships with the necessary might perhaps only use it as a protection crews on the spot, and if this has to be done dgeinst competition with another aimallar exclusively out of the telegraph's receipts, undertaking. the latter cannot in the most favourable This latter case might in the present circumstances suffice to cover the outlays. instance possibly as there are at pre-When in addition hereto the very consider-sent two Companies in London, who have able outlays are considered which must be already commenced their work for the pur-incurred for the manufacture of the cables pose of proceeding from India by two in Europe and especially for the transport different routes in order to carry their Tele-to and the laying in China and Japan—graphs via Singapore and Rangoon to China outlays which may amount to six millions of and Japan, and who are perhaps simultaroubles—it is evident that the undertakin; Behighly unsafe for those who have to find ne ously through their agents competing for the Russian Concession. Hence the caution the capital. money has no meaning whatever, and does The consideration of these circumstances not secure the Imperial Government in the has brought us to the conclusion that the least. The granting of the Concession would enterprise can only be carried out and be secured for the future if the cables are ma-therefore have to depend only upon the Concessionaires being able to carry out the un-an establishment there in order that they nufactured in Russia, and the Company has dertaking both from a material and personal standpoint, and upon the objects they may always have the necessary steamers and crews at their disposal, without having have in view. The incontestable truth of these views will at all events not be lost to keep them up constantly. We conse-sight of by the Imperial Government, if in quently intent to construct steamers to general, as we do not doubt, the great combe used for commercial purposes between mercial' and political importance of tele-Russia, China and Japan, and to establish graph connections with China is duly esti-a cable manufactory and a colony of work-mated andfullyadmitted, and if the Governmen on some spot of the Russian coast ment really wish to have these connections, within the Amur District.

In this case we are firmly convinced that As the founding of such a Settlement the concession for the telegraphs to China will besides have the advantage that the cul-and Japan cannot be granted to anyone ture of the place in question, say Possietta else but to ourselves, as we are neither for instance, will be considerably raised by Agents of English Companies nor do we such a population, we believe that the Imintend to sell the concession to English perial Government will not, in consideration founders; onthe contrary, we come forward of these advantages, hesitate to assign to us the necessary land for these establish-as perfectly. independent founders, which we have sufficiently shown the Government, ments.

ad 3,—In laying the cables it is for two Uy the cables already laid by us betareen england, Norway, Denmark, Sweden and reasons necessary that a man-of-war should Russia. "In connection herewith we think accompany the cable ships: first in order that the 24 millions of roubles material to protect the cable ships, which can only value of these cables constitute a guarantee sail slowly against the Chinese pirates which none of our competitors can show. secondly in order to give the Chinese and At the same time we take the liberty of Japanese Governments striking proofs of adding that we intend as soon as possible the protection of the Imperial Government to Iny a cable vit Iceland and Greenland of the undertaking and thus obtain greater to Canada in America, as will be seen from security for the same.

ad 4.—The Government claims as caution the eneloned Act of Parliament, (Voucher money 150,000 roubles in 5 per cent. State With regard to the conditions respecting Inscriptions in order to secure the due the payment of the caution money of fulfilment of the obligations to be entered 150,000 roubles we venture to make it a by the Company. We believe that in condition that after the laying of the firs. Goverment rank equally, and we therefore Rassia all valuables guaranteed by the telegraph cable in the Chi hina Seas such cable shall take the place of the caution consider it unfair that only one particular money and shall become the property of description of the same will be accepted, the Russian Government in case. we do not the more so as with the full our obligations, No doubt this will Imperial Statutes it has been made lawful be deemed a sufficient guarantee as such a to accept all such papers. cable would represent at least 500,000 Independent hereof the founders might roubles. by these stipulations become subject to losses in consequence of fluctuations of the ai &-—We an only consider the tele Htkould be carried out by ts, on o Heelan undertaking in China and Japan, if exchanges, which cannot really be the intention of the Govertiment. The selection enterprise, such as we have already had of the papers to be deposited as caution the honour to declare towards the end of money should therefore in fairness be left Art. 1 of this letter. If this interpreta. to the Concessionaires. tion should both politically and commer-With regard to the amount of the caution cially be correct and be acknowledged as money and the influence it may have as a such by the Imperial Government, we think guarantee of the carrying out of the under-that we may venture to advance the condi-standing, we are of opinion that the amount tion that the Government will not only neither corresponds with the expense which grant the undertaking their protection, but the Government will incur in constructing also, as the protection would otherwise be-the Telegraph to Possietta, nor that it is in come valueless, extend the same to the such proportion to the cost of the cables, persons employed in the carrying out of which will amount to about six million the enterprise. We, on our part, intend roubles, that the Company would on after the favourable experiences we have account of that caution money be com-had in the question of the Libau line, to pelled to fulfil the obligation they have ive a preference to the employment of taken upon themselves. rissian officers, who are better acquainted Should it ultimately, after the concession with local matters than foreigners. had been obtained, for instance, be found ad 6.—According to authentic informa that the Concessionaires had calculated tion received from London the Chinese wrongly and that the business would not Government intend at their own expense pay, there is no doubt that the Company to construct landlines in China, and they would prefer the loss of 150,000 roubles to are said already for that purpose to -have the uncertainty of a profit, and the cables would then not be laid, whilst the Governquade purchases of telegraph wire in Enge ment would be constructing their landline Besides this, as already remarked in. Art, and suffer a great loss.

4 of this letter, two English Companies The same case might arise if the conces-have commenced the works. for two. Sub-sion is given without regard to the personal marine lines from India. to. the; Chins qualities, the business capacities, and the objects of the Founders, to anyone who

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