893.74/552: Telegram

The Chargé in China (Mayer) to the Secretary of State

168. Your 75, April 11, noon.14

1.
At urgent request Federal representatives I pressed Minister for Foreign Affairs yesterday at Foreign Office day [sic] to authorize Minister of Communications to conclude negotiations immediately with Federal Company for execution of contract. I pointed out that American Government’s proposal to Japanese Government fulfilled all reasonable demands of latter and left Chinese Government free to act. The Minister for Foreign Affairs replied that Sze had had negotiations with the Department of State and that it was now absolutely necessary to await Japanese Government’s reply to memorandum before executing contract. The Minister for Foreign, Affairs asked if Japanese Government had made reply.
2.
While Federal representatives state negotiations with Ministry of Communications regarding execution of contract proceeding favorably, I fear traffic arrangement proposal being utilized by Japanese further to delay, through diplomatic means, execution of contract.
3.
From recent conversations with Davis, I gather Radio Corporation by no means averse to, if not entirely in favor of, an arrangement with Mitsui whereby latter’s Peking station will be used by both parties thus avoiding building Federal Peking station. Such an eventuality I consider would be very unfortunate from political considerations of need for direct Sino-American communications between American and Chinese Governments and between them and their respective Legations.

Repeated to Tokio.

Mayer
  1. Not printed.