893.74/375

The British Chargé (Chilton) to the Secretary of State

No. 678

Sir: I did not fail to communicate to my Government the views contained in the notes which you were so good as to address to me on July 19th, July 26th and July 27th, in regard to radio traffic in China, and more particularly in connection with the Federal Telegraph Company’s concession.

I now have the honour to inform you, under instructions from His Majesty’s Principal Secretary of State for Foreign Affairs, that His Majesty’s Government understand from the explanations contained in your note of July 19th that there is nothing in the Federal Company’s contract to prevent stations in China, other than those covered by contract, from communicating with stations in the United States, including stations of the Federal Company. Otherwise, inasmuch as Article 14 of the Company’s contract provides that all radio messages from China for the United States are to be handled by the Federal Company there would in fact appear to be a practical monopoly.

His Majesty’s Government note the assurances contained in your note of July 26th, in which you communicated to me your general approval of the wireless experts’ recommendations of February 4th, 1922, and, having regard to the statement contained in the last paragraph of that note that you are prepared to advise American firms interested to come to an arrangement with British, French and Japanese interests on the basis of the experts’ recommendations, His [Page 818] Majesty’s Government have instructed me to inform you that their grounds for opposing the Federal contract are removed, and that His Majesty’s Minister at Peking will be instructed accordingly.

I have [etc.]

(For His Majesty’s Chargé d’Affaires)
Herbert W. Brooks

[First Secretary of Embassy]