The Netherlands Legation to the Department of State
The German-Netherlands Telegraph Company of Cologne (Germany) owned before the war outside the submarine cable between the Island of Guam (via Yap) and Shanghai (China) the cable between Yap and the Netherland East Indies (Menado).
Germany has renounced, according to the peace treaty Art. 244, annex VII, all rights in these submarine cables. The fate of these cables forms part of considerations between the Allied and Principal Associated Powers.
The quickest cable connection between the United States and the Netherland East Indies goes from San Francisco via Honolulu, Midway, Guam, over Yap to the Netherland East Indies. The first part of this connection i.e. to Guam is owned by the Commercial Pacific Company.
It is not yet decided who will own the last part of this connection, formerly belonging to the German-Netherlands Company, nor which nation will receive the mandate over the Island of Yap.
The Netherlands Minister wishes to emphasize how vitally important it is especially in view of the rapidly growing trade between the United States and the Netherlands East Indies that the above mentioned direct cable connection between these countries is only controlled by the two countries and that the mandate of Yap will not be given to a third nation.[Page 116]
(vide the statement of the President of the United States in regard to this matter made to the Foreign Relations Committee August 19, 1919 and the Resolution offered by Senator Lodge on March 22, 1920.)