No. 41.
Mr. Seward to Mr. Fish.

No. 93.]

Sir: I have the honor to hand to you herewith a copy of a letter, No. 164, which I have received from Mr. De Lano, inclosing a copy of the agreement between the Great Northern Telegraph Company and the provincial authorities to cancel the contract under which the company was to build a line of telegraph between Foochow and Amoy.

The original proposal to build this line was made when Japan was occupying a part of Formosa, and was accepted, so to speak, as a war measure. Ever since, it has been the desire of the Chinese to escape from the matter.

They have finally succeeded, and while there is promise for the future in the school of telegraphy which has been established according to Article VII of the agreement, I do not look for an early prosecution of the enterprise. Mr. De Lano’s opinion may be right, however. He has the advantage of his acquaintance with the people immediately concerned to guide him.

Articles V and VI are not so liberal as we might have expected, remembering the generous support given to the company by the representatives of other governments.

I have, &c.,

GEORGE F. SEWARD.
[Inclosure in No. 93.]
No. 164.]

Sir: I have the honor to inclose herewith a translation of a dispatch, which I have recently received from the Chinese officials at this port, showing the terms of a settlement of the late controversy between the provincial government and the Great Northern [Page 56] Telegraph Company in regard to the erection of a telegraph line between this port and Amoy.

I may add for your information that the school of telegraphy mentioned in the dispatch is now in successful operation under the auspices of the company, and that it seems very likely that the Foochow and Amoy line will be constructed by the provincial government as soon as their own people become sufficiently instructed in the art to conduct the enterprise,

I have the honor to be, sir, your obedient servant,

M. M. DE LANO,
United States Consul.

Hon. George F. Seward,
United States Minister, Peking.

[Inclosure in inclosure in No. 93.—Translation.]

The committee of foreign trade have the honor to inform you that the provincial government of Fuhkien has concluded an arrangement with the Great Northern Telegraph Company in regard to the proposed Foochow and Amoy telegraph line, by which the late contract for the erection of said line has been canceled, and separate agreements concluded.

Under this arrangement, which was concluded and the articles signed on the 20th March instant, we have made a payment of $50,000 on account of the sum which was originally to be paid for the erection of the line, and are to pay the balance in two separate installments, as is agreed upon and set forth in the new contract, a copy of which we subjoin for your information.

As you have lately been absent from the port it is our duty to report the case to you, we having first duly communicated it to the high authorities of the province.

Begging you will give us a reply, we have, &c.,

FOREIGN COMMITTEE OF TRADE.

Copy of agreement.

Concerning the canceling of a certain contract (dated the 21st of May, 1875) about the construction of the Foochow-Amoy overland telegraph line, entered into between the parties of the first part, the high authorities of Foochow, represented by the board of foreign trade, and as parties of the second part the Great Northern Telegraph Company, represented by the director, George I. Holland, R. D.

Upon the declaration of the said high authorities that it is impossible and impracticable at present to carry out the above-mentioned contract, the said company, yielding to force of circumstances, agrees to cancel the same upon the following conditions:

  • First. It has been arranged by both the aforesaid parties that the said contract be at once canceled; the said company to deliver all materials, stations, instruments, &c., which the said high authorities have purchased, to the said board of trade, in terms to be specified in this agreement, and the said high authorities to pay the said company the balance due to them, in terms also to be specified herein.
  • Second. Payment of the whole remaining contract sum, viz, $124,500, (one hundred and twenty-four thousand and five hundred Mexican dollars,) as follows: $50,000, (fifty thousand dollars) this date; $37,250 (thirty-seven thousand two hundred and fifty dollars) on the 24th of April, and the balance of $37,250 (thirty-seven thousand two hundred and fifty dollars) on or before the 22d May.
  • Third. The company at once to deliver to the board of foreign trade all materials, poles, stations, and watch-houses, with their title-deeds, distributed on the line.
  • Upon payment of the second instalment, deeds of transfer of the company’s property at Nantai (Foochow) to be prepared, and the same, with all materials, stationery, &c., in the company’s go-down, to be handed over to them on the day of payment of the third and last instalment, deducting from that amount any of the articles that may be deficient; the company to deliver the entire quantity of materials, tools, and instruments, poles, &c., specified in the contract, less the quantities destroyed and stolen during the building of the line.
  • Fourth. The company to waive all claims for all and every unexecuted portion of work according to contract.
  • Fifth. The high authorities not to grant similar contracts or concessions to any other foreigners in the reconstruction of this line.
  • Sixth. Should China succeed in building the line herself, and open it for public correspondence, they will grant the company exclusive right to connect their present submarine [Page 57] line with the same, and agree upon a certain scale of charges which can afterwards not be changed without mutual consent; this clause to have no reference to eventual sea-cables, or if China should reserve the line entirely for government services.
  • Seventh. The high authorities will immediately make arrangement with the company for instructing Chinese students for the time of one year, and after the expiration of this time it shall be at the option of the high authorities whether they will further extend this arrangement or not.
  • Eighth. The foregoing stipulations have been submitted by the board of foreign trade to, and approved by, the high-authorities, viz, the governor-general of the provinces of Fuhkien and Chekiang Li; the commander of the Manchu garrison in Foochow, Wang; and the imperial commissioner and governor of the province of Fuhkien, Ling, the contract of 21st May, 1875, having this day been canceled and given up.

This agreement is written in English and Chinese in duplicate, each party to keep one copy, the Chinese text to be binding on the high authorities, and the English text to be binding on the company.


[Official stamps and seal of the board of foreign trade.]
For the Great Northern Telegraph Company,
GEORGE I. HELLAND, R. D.