893.74/283: Telegram
The Minister in China (Schurman) to the Secretary of State
[Received April 10—6:46 a.m.]
100. Your 43, March 7, 3 p.m.5 Schwerin has been concentrating his efforts to have the original contracts of the Federal Company of California put into operation but even in this has so far been completely unsuccessful. It now appears that the inter-departmental board composed of representatives of Ministers of Foreign Affairs, Navy and Communications has reported favorably and that Minister of Communications is also in favor of going on with the contract but that this is being blocked by the Prime Minister who, acting … under Japanese … influence, has refused to allow Minister of Communications to present matter to Cabinet for decision at the last two meetings and is in a position to continue to do so. On March 15th and 22nd I addressed notes to the Foreign Office5 … demanding written replies to my former communications and inquiring whether the Chinese Government intended to proceed with [Page 791] the contract. To these I have had no reply and in the absence of a Minister for Foreign Affairs I had an interview with the Prime Minister on April 2nd. He was evasive, showed strong disinclination to discuss the matter at all, and no progress was made.
If Wellington Koo assumes his duties in the next few days I shall at once take up the matter with him. He is of course familiar with it and in view of the attitude taken by the Chinese delegation at Washington relative to the question of wireless in China it would seem to be very difficult for him to do other than support the execution of the Federal contract and to resist the Japanese monopoly. It would greatly strengthen my position if you would telegraph me a strong message to deliver to Koo as from yourself, referring to last year’s transactions in Washington and pointing out that failure by China to execute the Federal contract and yielding to the Mitsui monopoly would effectually close the door to equal opportunity in respect of wireless communication in China, a position which the Chinese delegation in Washington so vehemently opposed. A copy of this message has been mailed to Tokyo.