893.74/516: Telegram

The Secretary of State to the Minister in China ( Schurman )

[Paraphrase]

16. Legation’s telegram No. 39 of January 23. The Department would hardly be inclined to reconsider its attitude with respect to the Federal contract save for the fact that a situation has arisen within the Federal Telegraph Company of Delaware which gives rise to the danger that the Radio Corporation may be unable to continue with the project on the original plan. There is some reason to fear, therefore, that in fact the Japanese proposal may prove to be the only available alternative.

Pending the arrival of Moss and Davis the Department will be glad to have further comment from you in view of these possibilities.

Hughes