893.74/213
The Chairman of the Board of the Radio Corporation of America (Young) to the Secretary of State
[Received January 11.]
My Dear Mr. Secretary: The Radio Corporation of America, having been advised that the subject of electrical communications in the Pacific was on the agenda of the Disarmament Conference, has suggested to you and to your associates, as American representatives, a plan for international cooperation in the development of wireless stations in China. Such a plan has already been adopted by the principal wireless companies of the world for South America, and rapid progress is being made there.
The advantages of international cooperation are:
- First, the elimination of the irritation and controversy now existing because of the several overlapping and conflicting concessions already granted in China.
- Second, the economy of capital and wave lengths resulting from the use of sufficient stations only to do the external business of China rather than many stations all operating without adequate traffic at a financial loss.
- Third, prompt construction of wireless stations in China and corresponding increase of stations in all the principal countries of the world required for the communication circuits.
- Fourth, wide distribution of stations in China as business may be developed rather than congestion of several stations at one or two important points, like Shanghai and Pekin.
I quite realize that the Radio Corporation of America will be charged, no matter what program it suggests, with an attempt thereby to strengthen its own position in the Orient and to weaken the position of the Federal Company. That in fact is not the case. Our purpose is to find a way of getting quick and accurate communications with the Orient because they are greatly needed now and will be more needed in the immediate future. If they are not provided, the Radio Corporation of America, which is the only American wireless company furnishing international communications, will be criticized for not providing such communications. We are, therefore, interested that some practical program should be immediately adopted to meet the present need and the increasing requirements of the future.
I desire to recall to your mind the program set out in two letters heretofore submitted to you; one to Mr. James R. Sheffield dated December 7, 1921,9 and one to the Honorable Elihu Root dated December 12, 1921.10
[Page 838]We have reason to believe that the French and English are in sympathy with such a program, and we are inclined to think that the Japanese would be also. The real obstacle seems to be that some of your advisors are again raising that always effective cry of monopoly.
I maintain that the external wireless communications of America should be done by a single public service company regulated by our own Government as to rates, service, and return, and that there is no place for competition in the field of external communications. America can adopt either the theory of regulated monopoly or that of competitive activity—either will regulate rates and service. The only difference is in external communications if the competitive theory be adopted, the foreigners will regulate our rates and service; if the monopoly theory be adopted our own Government will do so. France, Germany, and Japan have adopted the theory of centralized control either in private or Government hands. Nothing would please them more than to have competitive American stations at their mercy.
We shall not urge the matter further, but we do put ourselves at your disposal in case we may be of help in furthering any communications program in the Orient which may be of benefit to America.
Very respectfully yours,