893.74/330: Telegram
The Minister in China (Schurman) to the Secretary of State
Peking, June 25,
1923—1 p.m.
[Received June 25—11:14
a.m.]
237. Substance of your telegram 115, June 19, 6 p.m., communicated to
Schwerin at Shanghai who replies as follows:
- “1st. It would appear that the Radio Corporation has
persuaded the Department to withdraw from previous policy
that American wireless interests should not participate in
any radio consortium for China and now is prepared to allow
that wireless interest to enter an international agreement
on the basis of expert recommendations.
- 2d. A meeting of international wireless interests takes
place in London in July. Radio Corporation officers sail
from New York June 27th to attend.
- 3d. Department will consent to preliminary undertakings
before meeting—in other words, to program.
- 4th. Radio Corporation will be placed in a very desirable
trading position to make best terms to suit its financial
interests at the meeting as follows: (a) can enter foreign combination and retain
Federal interest in service China to America; (b) can enter foreign combination and
drop Federal interest; (c) can retain
Federal interest only. I am inclined to believe that they
will trade under B, especially if the foreign interests will
agree to an American chairman of the Board of
Governors.
- [5th?] If the British demand any modification of Federal
contract on the ground that present contract incompatible
expert[s’] recommendations, such modification might require
consent of Chinese Government and might eventually render
contract negative through delay and resulting adverse
financial conditions. If Radio Corporation goes on with the
Federal or retires, the fact that the British are familiar
with special arrangements will not affect their interests,
whereas, if they retire and the Federal Company endeavors to
go on with any other interest, this knowledge may be a very
serious tactical error and might be used to our
disadvantage. I realize, however, that the Department is
fully alive to American interests, and therefore concur in
giving the information to the British Embassy, but hope it
will be considered a confidential document.
- 6th. It would appear that the Department had been
persuaded that China was ready and agreeable for the Powers
to take over China’s high-power radio interests on joint
account.
- 7th. I approve of the Department’s acting on paragraphs 1
and 3. Let us hope that resulting conditions may be far
better than we can estimate at this time.”
