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823.73 All America Cables Co./13: Telegram

The Secretary of State to the Ambassador in Peru ( Gonzales )

18. Department’s March 30, 4 p.m.,6 and your March 30, 11 a.m. You are instructed to state to the President in a further audience, that this Government trusts that the Peruvian Government will at least delay the closing of the rumored contract with the Marconi Company until an opportunity is given to American companies which may be interested to make propositions to the Government of Peru for the administration of the postal and land telegraph services or for the operation of wireless services. You may also state that the Department is advised that the All America Cables Company, in accordance with Clause 3 of the Company’s concession, had advised the Peruvian Government that it had decided to take up its wireless rights for the installation of a service to the north within the six months specified. In the opinion of the Company, this action preserved its wireless rights, and it would appear that the contract which it is rumored the Peruvian Government is on the point of signing with the Marconi Company would invade the legal rights of this American company.

The Department considers this question of great importance inasmuch as American companies interested would be prevented from operating in Peru for a long term of years if this monopolistic contract with this British company were to be agreed to by the Peruvian Government.

Hughes
  1. Not printed.