862i.73/16

The Secretary of State to the Japanese Ambassador ( Shidehara )

The Secretary of State presents his compliments to His Excellency the Japanese Ambassador, and begs to refer to the memorandum from the Japanese Ambassador to Mr. Hughes dated September 15; the memoranda from the Secretary of State to the Japanese Ambassador dated September 28 and October 6; and the memorandum from Baron Shidehara to Mr. Hughes dated October 12, 1921 upon the subject of the provisional use of the Naba–Yap–Guam cables for the transmission of messages between Japan and the United States; as well as to informal conferences which have taken place recently between representatives of the Navy Department and of the Japanese Government, in this regard.

The Secretary of State is informed that as a result of these discussions the conferees are agreed that the Guam end of the Naba–Yap–Guam cables be operated temporarily by the Commercial Pacific Cable Company for the United States Government and that the Yap and Naba ends be operated temporarily by the Japanese Government.

The through commercial rate between San Francisco and Japan will be four francs eighty centimes.

On westbound commercial traffic the Commercial Pacific Cable Company will retain its own proportion of tolls (four francs per word), pay the Navy Department (for the account of the five principal Allied and Associated Powers) 38 centimes per word for Guam–Yap–Naba cable tolls, and pay the Japanese Administration for their proportion, 42 centimes per word, which covers charges for delivery to any point in Japan.

On eastbound traffic the Japanese Government will retain its own proportion of tolls (42 centimes per word), retain 38 centimes per word for the account of the five principal Allied and Associated Powers, and pay the Commercial Pacific Cable Company four francs per word plus forwarding charges from San Francisco to destination in the United States.

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The Commercial Pacific Cable Company will account with the Japanese Administration in accordance with recognized procedure for handling cable accounts, and render a monthly report to the Navy Department of the traffic handled over these cables.

The Government rates and press rates over the Guam–Yap–Naba route should be the same as over the present route. The reduction, on account of Government and press rates, in the amount due the Navy on westbound traffic and that due the Japanese Government on eastbound traffic for the account of the five principal Allied and Associated Powers, will be calculated proportionately.

The Secretary of State would be pleased to be informed by Baron Shidehara whether the foregoing is in conformity with his understanding of the agreement arrived at as a result of the informal conference above mentioned.50 In the event that such is the case, Mr. Hughes will hasten to advise the Secretary of the Navy thereof.

  1. The Japanese Ambassador confirmed the understanding in a memorandum of Feb. 4 (file no. 862i.73/28).