. . . . . . . . . . . . . .
[Enclosure]
The American Minister (Schurman) to the Chinese Acting Minister for Foreign
Affairs (Huang
Fu)
Peking, February 13,
1923.
No. 409
Your Excellency: I have the honor to inform
Your Excellency that my attention has been called to a further
protest addressed by the Japanese Government to Your Excellency’s
Government against the execution of the terms of the contract
between the Ministry of Communications and the Federal Telegraph
Company which has been the subject of correspondence between the
Legation and the Ministry of Foreign Affairs, on the ground that it
infringes the terms of a supplementary letter of March 5, 1918,97 relating
to the contract between the Chinese Government and the Mitsui
Company of Japan the effect of which letter would be to create a
monopoly in favor of that Company for the erection of wireless
telegraph stations for communication with Europe and America.
I desire, therefore, in accordance with the instructions of my
Government, to point out to Your Excellency that in general the
treaty obligations of Your Excellency’s Government preclude it from
entering into agreements tending to create monopolies and that
furthermore in its treaty of 1858 with the United States97a the Chinese Government specifically agrees that
should it at any time “grant to any nation or the merchants or
citizens of any nation any right, privilege or favor connected with
navigation, commerce, political or [Page 787] other interests which is not conferred by this
treaty, such right, privilege and favor shall at once freely inure
to the benefit of the United States, its public officers, merchants
and citizens”. In view of these provisions my Government holds that
the Chinese Government is not in a position to create in favor of
third parties any such rights as would exclude American citizens
from the right to participate with the Chinese Government in any
category of enterprises such as telegraphic communications.
For these reasons, the Government of the United States is not
prepared to recognize any claim of contractual rights in favor of
any party as valid or effective to exclude its nationals from any
field of commercial or industrial activity in China. Furthermore, it
is the opinion of my Government that the claim of the Mitsui Company
to exclusive rights is not in accord with the spirit of the
Washington Treaty relative to principles and policies to be followed
in matters concerning China98 nor with the general principles which
inspired the deliberations of the recent conference.
My Government is deeply interested in the Federal Telegraph Company’s
enterprise and considers that it will give the greatest constructive
benefits to the peoples of China and the United States. The Federal
Telegraph Company did not enter into this contract with any idea of
selfish exploitation but with the earnest and sincere intention of
providing for China radio stations as great and efficient as any in
the world. These stations will have a high commercial value in the
earning capacity of China, and I desire to call special attention to
the fact that under the terms of the contract China participates in
their earnings from the outset and eventually becomes sole owner. My
Government is naturally anxious that these stations should be built
and intercourse opened as soon as possible. It does not consider any
protests against this construction from parties claiming a
monopolistic right in China covering radio activity as well-founded,
and it is confident that Your Excellency’s Government will not, in
response to them, consent to impose upon China the burden of an
oppressive and highly dangerous monopoly.
The Federal Telegraph Company has built many of the large stations of
the world and in constructing the stations now contemplated will be
doing nothing experimental but repeating operations which have been
successfully made at other places. They will be supplying China with
a completed device which will give international communication,
which China so greatly desires, and will place the Government of
China in an independent position in respect of its rights to have
international communication without interference from any alien
interest.
[Page 788]
The representatives of the Federal Telegraph Company now in Peking
have come a long distance, expended much money and time, have
confidence in the integrity of China and intend conscientiously to
fulfill all their obligations to China, and I urgently request that
the necessary action be taken by the Chinese Government at the
earliest possible date in order that this work can proceed as
contemplated and desired.
I avail myself [etc.]
