893.74/374a

The Secretary of State to the British Chargé (Chilton)

Sir: I addressed to you yesterday afternoon a note in which, replying to inquiries previously made by your Embassy in behalf of the British Government, I advised you that upon certain understandings, and of course upon the condition that the French and Japanese Governments, as well as the British Government, likewise give their approval, I should be prepared to advise the American firms in interest that I perceive no objection to their coming to an arrangement with the British, French and Japanese radio interests on the basis of the experts’ recommendations of February 4, 1922.

Later in the course of the same afternoon, I received your note (No. 612), bearing the date of July 25, in which you advised me that until the British Government knows that the American Government has accepted all the recommendations of the Washington experts, the British Government must maintain its opposition to the Federal Company’s contract.

This crossing of the two communications on the subject leaves a doubt as to the intentions of the British Government, which I trust [Page 817] I may rely upon your good offices to resolve as speedily as the views of your Government can be ascertained.

Should the British Government elect to continue its opposition to the Federal Company’s contract, in order “to defend the Marconi Company’s interests in so far as they are affected by the Federal Telegraph Company’s agreement”, I trust that, in view of the fact that the Marconi Company’s interests have hitherto been defined by that company as involving a monopoly in all phases of radio enterprise in China, the British Government will apprise me whether it is its intention to support that claim, or whether it is prepared to give such an assurance as this Government has given in the case of the Federal Company’s project, that such diplomatic support as it may have occasion to give will be conditioned upon the enterprise involving no monopolistic element or abridgment of equality of opportunity.

Accept [etc.]

Charles E. Hughes