893.74/313: Telegram
The Minister in China (Schurman) to the Secretary of State
[Received June 7—6:55 p.m.]
204. My 202 of June 6 [7], 2 p.m. On February 28 the Federal Telegraph Radio Corporation option expired, the matter being left open with no renewal at that time. The option was renewed, however, in May until July 15, 1923, and Mr. Schwerin was promised continued support by the President of the Radio Corporation, General Harbord, who added that he was precluded from entering upon any combination with British or Japanese interests. It is stated by Schwerin that the Japanese Legation here has been urging the Peking Government to delay the Federal wireless contract until after July 15, basing its representations on the ground that the Radio Corporation will then abandon the agreement and cooperate with the Mitsui Company.
Upon cabling to the United States to learn whether there was any truth in this suggestion, Mr. Schwerin informs me that he received a reply that it has been indicated by General Harbord that the present agreement will not be extended by him beyond July 15 and that he may be compelled to enter into arrangements with the Mitsui Company if the Peking Government has not agreed by that time to the Federal Telegraph Company contract.
… I beg that you will at once find out whether this report is true. If this report is correct it will be of no use for us to take any more steps on behalf of the Federal wireless contract as the Peking Government will delay matters until the expiration of the [Page 796] period of the option, leaving the Radio Corporation and the Mitsui Company free to make such arrangements as they see fit and thus relieve the Peking Government of its present embarrassment, as the Japanese Legation advises.