893.74/268: Telegram
The Minister in China ( Schurman ) to the Secretary of State
[Received February 14—5:25 p.m.]
54. With reference to the Legation’s telegram of February 10, no. 47. Mr. Schwerin92 received day before yesterday from Paris certain [Page 784] reliable and confidential information to the effect that in certain European circles it is alleged that the outlook is doubtful for the conclusion of the Federal-China contract because of China’s reported desire to remain on friendly terms with the opposition cable companies and the fact that the French, British, and Japanese radio groups are reported to have concluded an arrangement to pool their radio interests in China which agreement meets with the full endorsement of the Eastern Extension Telegraph Company and the Great Northern Telegraph Company. That the Telefunken and Marconi Companies have been invited to join is also reported.
In my informal discussion with the officials of the Ministry of Communications I have urged immediate conclusion of the Federal agreement, using the above information and calling attention to the fact that should the Federal agreement fail to become effective an alien radio monopoly will hold China in its hands.
I am informed by Mr. Schwerin that the Japanese are unable to work the Mitsui Station and as a result they are desirous of obtaining outside help by internationalizing it. Mr. Schwerin has declined to join this organization after being approached in the matter. In an official report from the Japanese Minister to the Chinese Government it was stated that over eight million dollars had been expended upon the above-mentioned station, which explains why the Japanese were desirous of unloading and securing aid from outside. I have mailed the American Embassy at Tokyo a copy of this telegram.
- R. P. Schwerin, president of the Federal Telegraph Co.↩