893.74/272: Telegram
The Minister in China ( Schurman ) to the Secretary of State
[Received February 28—5:34 p.m.]
70. I held long conversations on February 26 with Foreign Minister and Minister of Communications and pressed in strongest terms for necessary measures to be taken immediately to execute the Federal contract. The Minister for Foreign Affairs has just informed me orally that on February 27 its intention to execute the contract was affirmed by the Chinese Cabinet, basing this decision upon governmental policy and the comparative advantages of the Japanese and American agreements. He stated in addition that, before any further progress could be made with the Federal contract, certain steps were necessary, among them being that of dealing with Japanese opposition which might not be possible to overcome in less than one or two months. The Federal Company, he suggested, should give aid in the removal of these objections to the Chinese Government. My statement was that the exchange of letters clarifying the Federal Telegraph agreement and the purchase of land near Shanghai were the immediate steps necessary, but he reiterated that it would be impossible during the specified period to accomplish anything. Referring to my note of February 1394 in which I asked the Chinese Government to take the necessary steps to carry out the agreement of the Federal Company, I requested an early reply.
According to Mr. Schwerin, within two months the land selected near Shanghai will be flooded for the rice crop thus making work impossible this year, and he believes that the Chinese authorities know this. The investment, he considers, will be rendered hopeless if this further delay is allowed.
- Infra. ↩