Nanking June 25.
That all Chinese shareholders of the Shanghai Mutual Telephone Ca, should be called upon to oppose the proposed sale of the company to the International Telephone & Telegraph Corporation, and to support. the jovernment in its acquisition of this Smportant yublie utility. is farther urged by the Ministry of Communications in two separate telegrams despatched yesterday to the Ghinese Ratepayers' Association of the International Settlement. and various civie leaders in Shangha After pointing out that the proposed sale, if acted, will not only impair the interests, of telephone users bat will also—in view of the decision of the Settlement authorities seriously derogatory to nati Fights, the telegram goes on to sam "According to the present plan of the Ministry, after the company is taken over, shares held by Chiness will be either redeemed with cash according to the current market rate, or exchanged for mew shares which will constitute the "business" shares. Shares held by foreigners will be bought back by the Government at the current market rate. The new tariff will be fixed only at such. a rate as will be necessary for the maintenance of the enterprisoand at the same time assure a. reasonable margin of profit to the private shareholders. Promotion of the interests of telephone subscribers as a whole, and not pecuniary gain, will be the Drimary'aim of the Government."
Replying to. the communication from the Ministry of Communica tions, the Chinese Ratepayers' Asso in, in. a telegram despatched ut, assured: the Ministry mess to use every means within its power to facilitate the realization of the Government's plan, The telegram also suggested that the right to approve the sale of the company and to grant the franchise, (which is now supposed to rest with the Settlement. authorities) bed claved taken over by the Ministry that even if the shareholders Should decide upon the sale of the company to a foreign corporation, the Ministry would still be able to veto and disapprove: the decision of the shareholders. The telegram further suggests that the detailed measures for the acquisition of the Company which have been formular by the Ministry be made public. {It is pointed out that since adequate guarantees for the rights of shate~ Holders are provided for in the present plan of the Ministry, and since the main object of the Govern ment is to benefit telephone users (and, not profit-making): if the detailed measures are made public, fil shareholders and subscribers, Irrespective of nationality, will support the Government.
'A manifesto voicing opposition to the proposed sale of the Shanghai Mutual Telephone Ca. to a foreign corporation has also boon tanned by the jehoral Labour Unior in Shang-the manifesto urges all Chinese +holders to attend the impending: shareholders' meeting of the ci pany and vote against the propo Nanking to Protest Again Tune 28, It 1" vaderstood that a reply to the protest of the Ministry of For~ eign Affairs in connection with the proposed sale of the Shanghai Mutial Telephone Company to a foreign corporation has been made by the Shanghai Consular body. While the oficial text it not available, it is Tearned that the reply states that since. the National Government has not yet taken over the International Settlement, the responsibility for disposing of the Telephone Company lies with the Shanghai Municipal Council.
understood that another protest will be lodged by the Govern ment.
In the meantime, the Preparatory Committee for the Association of Citizens of the Special District of Shanghai is making plans to oppose the sale. The entire body of Chiveso telephone users and Chinese rate payers will ce-operate to have telephone administration taken over by the Chinese authorities.
'A manifesto pledging their unconditional support of the Government in its resolution to recover the telephone administration righto in the International Settlement was also issued by 90 Inbour unions yesterday.-—-Kuo Min.
Text read from the printed page and cleaned; old type leaves the occasional error.