893.74/526: Telegram
The Minister in China ( Schurman ) to the Secretary of State
[Received February 21—10:07 a.m.]
72. Davis and Moss arrived evening February 19th and are conducting negotiations with Director General of Telegraph on basis of terms of the original contract. It would seem according to Moss that the Chinese Government, having learned on reliable authority of the Japanese proposals and confronted with the possibility of having to accept a radio consortium of four powers, may be willing to accept the Federal contract with a few minor changes. In any case Moss quotes Director General as stating in his first interview that there is no question of cancelation of the contract by Chinese Government.
It appears that Davis and Moss are ignorant of the contents of your telegram No. 16, January 28, 3 p.m., and, in case they are not informed thereof by their own principals, have I authority to communicate to them the substance thereof as well as my No. 61, February 5, 9 p.m.? In view of the contingency of the withdrawal of the American parties to the Federal contract, although the Chinese Government may possibly be willing to execute it, I request the Department’s explicit instructions as to the support I should give Davis and Moss lest I be drawn into extremely embarrassing situation.