823.73 All America Cables Co./15: Telegram

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

21. Your 18, March 18 [31], 4 p.m. Contract signed by Minister of Interior and special representative Marconi Company. President will withhold signature for number of days. He made following statement:

The All America Company is assignee another company whose contract contains clause compelling company establish wireless communication north from Callao to Panama in event such communication became general in world. Year ago All America was asked by Government if prepared to fulfill obligation. Replied was not but would give answer six months. At the end of six months Government again asked for answer and company said could not state what would do until knew findings of International Conference on wireless to be held Washington which would assign each country radius activity; that assignment for Peru might not interest company. In the meanwhile wished hold concession good.

President states that a month before he authorized conclusion of negotiations with Marconi Company he urged Lima manager Baker to tell him if All America would comply and Baker said impossible to give answer.

President states emphatically All America has not advised him it has decided to take up its wireless rights but states that it still has opportunity for action. He says that contract with Marconi not a monopoly for them but is to operate and extend the Government’s plants. I showed President copy of contract I had obtained privately containing no provision against operating wireless north or referring to existing concessions. He promised to see that such provision be inserted.

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The most important provision in the contract regarding wireless is requiring that the company build station or remodel existing station with sufficient power to communicate with stations at Buenos Aires.