893.74/77
The Secretary of State to the President of the Federal Telegraph Company (R. P. Schwerin)
Sir: In reference to conversations heretofore had with you and other representatives of the Federal Telegraph Company, the Department of State takes occasion to confirm to you its understanding [Page 420] that you are willing to submit to the American Group of the China Consortium, for such action as that Group may find appropriate under the terms of the Consortium Agreement, the proposal to undertake the financing of the contract between the Federal Telegraph Company and the Chinese Government, dated January 8th, last, for the installation of certain wireless stations.
The Department further takes occasion to advise you that if, after such submission of the proposition to the American Group, that Group does not within a reasonable time accept the same as Consortium business on financial terms which the Department may deem reasonable, the Department will consider itself free to give its full approval and lend all proper diplomatic support to the project covered by the company’s contract of January 8, 1921, with the Chinese Government, if otherwise financed upon terms not detrimental to the credit of the Chinese Government.
I am [etc.]
Under Secretary