811.73/560: Telegram
The Secretary of State to the Ambassador in Great Britain ( Davis )
107. Communicate following to F. J. Brown, former Chief Delegate to Communications Conference, Washington, from Norman Davis.
“In continuation of message of 19th instant, no decision now made regarding landing permit at Miami will permanently settle landing right problems as to connections between Western Union and Western Telegraph Companies because, sooner or later, the companies will want to extend on the west coast of South America and will want landing rights on the Isthmus of Panama and in the United States for a connecting cable. Would not a permanent working relationship be established if the Western Union owned cables to continental South America, the Western Telegraph owned cables to Europe and South America and the two companies be equally interested in the cables in Brazil and probably other points in South America? Such an arrangement should be mutually profitable, should satisfy both American and British business and enable both our governments to aid the joint enterprise. The All America Company, which owns no cable to Africa or Europe, could be protected in part by assurances from the Western Union and Western Telegraph Companies that in South America those [Page 826] companies would abide by any international agreement relating to communications to which either the United States or Great Britain is a party and specifically to provisions relating to the routing of traffic; and further, that all three companies agree not to seek new or the extension of existing monopolies as against each other; and further, that the Western Telegraph agree, upon reasonable terms, to grant to the All America Company permission to enter such points in Brazil as will permit the laying of a cable from Rio to American territory. Do you think the Western Telegraph would consider such a proposal? I have not discussed this with our Companies because I first desire to get your views.”