893.74/414: Telegram

The Minister in China (Schurman) to the Secretary of State

[Paraphrase]

433. Department’s no. 257, December 27, 3 p.m. In an interview regarding wireless today with the Minister for Foreign Affairs he told me that my Japanese colleague is making the strongest appeals for the maintenance of the monopoly clause in the contract of the Mitsui Company both to the Wai Chiao Pu and elsewhere. The main plea of the Japanese Minister is that the prestige of Japan in the matter must be guarded. Anticipating that the Japanese would bring forward a plan for joint control of wireless by Japanese, Chinese, and American interests, Koo asked what would be the attitude toward this of the American Government. I told him that if only the Mitsui station was involved in the proposal I believed that it would be considered by the Government of the United States and [Page 826] referred to the interested American companies. I added that it seemed to be a business matter rather than a diplomatic one.

I assured Dr. Koo that the American Government was still interested in the contract of the Federal Telegraph Company, and I said that I wished to relieve him of any embarrassment which Japanese pressure might cause him. In this connection I asked for suggestions but he had none to offer. However, I shall send him a note along the lines suggested in the Department’s telegram under reference.

After the appearance recently of newspaper articles supporting the Mitsui monopoly as opposed to the Federal contract, emanating from or inspired by the Japanese Legation, I had Peck prepare an exhaustive memorandum refuting the Japanese contentions. On December 22 I had copies of this memorandum sent to Koo and to the Vice Minister of Communications. Today Koo said that it gave him valuable ammunition to use in argument.

Schwerin may be interested to know that now Lennox Simpson’s paper31 is taking the lead in attacking the contract of the Federal Telegraph Company.

For the Minister:
Bell
  1. The Far Eastern Times, published at Peking.