893.74/310
The Secretary of State to the British Chargé ( Chilton )
Sir: I have had under careful consideration the note (No. 416) of May 28 last, in which you advise me that the British Government is of the opinion that the recommendations of the experts attached to the American, British, French, and Japanese Delegations to the Washington Conference, with reference to the question of wireless and cable communications in China, as embodied in their joint minute of February 4, 1922, provide the best solution that can be devised, and feels that the suggestions put forward by the experts should be generally approved and put into execution.
As a result of my study of these recommendations, I am disposed to agree with the view of the British Government that the general approval and adoption of these recommendations might well serve as a basis of an arrangement among the several interests of the various nationalities concerned, with a view to making possible the development of the external communications of China which is in the general interests, and avoiding unnecessary friction among the several governments and their respective nationals.
It will, of course, be understood that I refer only to the recommendations of the four experts, as signed jointly by them, and not to the appended “Heads of Arrangement respecting Wireless in China,”27 which are relevant only to the possibility of further special arrangement among the British, French and Japanese radio interests, and as to which, therefore, no expression of opinion on the part of the American Government is required.
With respect to the recommendations themselves, I venture out of an abundance of caution to note that the reference (in Section 6) to the existing contracts of the cable companies is not, of course, to be construed as implying on the part of this Government any recognition of the monopolistic or exclusive rights hitherto asserted by the cable companies under the terms of those contracts. And in that connection I feel it is appropriate for me to confirm the assurance of the American expert (in Section 2) that the existing concession of the Federal Telegraph Company contains no monopoly or exclusive [Page 816] privileges, and to add the assurance that such diplomatic support as this Government may have occasion to give this enterprise will in the future continue to be, as it has been in the past, conditioned upon its involving no monopolistic element or abridgment of equality of opportunity.
In regard to the several references (in Section 1 and Section 2) to the eventual purchase of radio stations by the Chinese Government, I should perhaps state that it is my understanding that, in the event of its purchasing any foreign-constructed radio station or equipment, the Chinese Government would, of course, be free to make any use or disposition of it not incompatible with the principle of equality of opportunity.
I would also note that the maximum differential between cable and radio rates (referred to in Section 6) is stated as optional.
With this understanding, I should be prepared to advise the American firms in interest that I perceive no objection to their coming to an arrangement with the British, French, and Japanese radio interests on the basis of the experts’ recommendations of February 4, 1922, on the condition, of course, that the French and Japanese Governments, as well as the British Government, likewise give their approval.
Accept [etc.]