Benj. P. Avery to [Seal of Foreign Board of Trade.], June 16, 1875

No. 164. Mr. Avery to Mr. Fish.

Sir: Under date of May 25th, Mr. De Lano writes me from Foochoo that “the controversy between the provincial authorities there, and the Great Northern Telegraph Company, has finally been satisfactorily adjusted, and that the Foo-chow-Amoy land-line of telegraph is to be completed by the company under Chinese government auspices.”

Through the courtesy of the Danish minister, I am able to forward the inclosed copy of the full text of the agreement between the provincial authorities and the Great Northern Telegraph Company. This document, which has been formally approved by Sheu-poa-shen, under instructions from the Tsungli Yamen, provides for the payment to the Danish company of $154,500, the sum of§30,000 (already paid) on the signing of the agreement, $50,000 when the line is completed, and $74,500 in two equal semi-annual installments.

In consideration of these amounts, including indemnity for damages sustained, the company is to build 160 miles of telegraph, fully equip the line, erect and furnish stations and watch-houses, the latter at intervals of about ten miles along the line, provide all superintendence, engineering, labor, and expenses in connection with construction, work the line for and on account of the Chinese government, and teach Chinese pupils the art of telegraphy, the last two items being left to future regulations in detail. The work of construction will begin by the 15th of August, and I learn that the line will probably be finished and in regular operation by November or December.

The Chinese officials who made the above agreement wished to have it include the purchase of the Pagoda-Anchorage line at Foo-chow, but the Danish company only stipulated to make its sale the subject of another contract; that it will be brought about, however, there is no doubt. This fact is a further proof of the intention of the Chinese government to maintain and extend its telegraph operations, the general direction of which will probably be given to Shen, who has just been advanced to the important position of viceroy of the two Kiang provinces, and made superintendent of foreign trade for the southern ports, his jurisdiction embracing the ports on the Yangtze Biver, and all south of that.

This appointment is a very good one, for Shen is one of the ablest and most intelligent of the high Chinese officials, and has been courteous and just in his dealings with foreigners.

Since it became certain that the new telegraph policy of the Chinese government was earnestly meant, I have taken occasion to congratulate the ministers of the Tsungli Yamen, Prince Kung being present, upon their advance movement as a thing greatly for the advantage of China, and to hope that other lines might be built by the government as it saw the need of them. They received my congratulatory remarks without any of the old evasiveness, appeared pleased, and observed that “things had reached such a condition that China was obliged to take the matter of telegraphs into her own hands.” This I understood to mean that to relieve themselves of increasing foreign pressure on the subject, they had determined to buy and complete the Foo-chow-Amoy line, and if it proves to be a good experiment, to build other lines.

I have, &c.,