Papers Relating to the Foreign Relations of the United States, 1925, Volume I

893.74/570

The Japanese Embassy to the Department of State

Memorandum

The Japanese Government have given a careful consideration to the two memoranda of the Department of State, dated respectively February 28, and April 8, 1925, relating to the question of wireless telegraphy in China. They are gratified to note in these communications the full sympathy and readiness with which the United States responds to their invitation to seek reconcilement of the divergent radio interests in China, and to bring about an amicable settlement of this question of controversy between the two countries.

2. It is doubtless known to the American Government that the Mitsui Company, according to the contracts of February and March, 1918, has completed the radio station at Peking. Regarding these contracts, the only point in dispute between Japan and the United States is the right of monopoly created in favour of the Mitsui Company to establish and operate all overseas radio service in China, to the exclusion of other nationals interested in such enterprise. The establishment and operation by the Mitsui Company of the Peking station have never been questioned by the American Government or the Federal Company.

3. The question, however, of the proposed stations of the Federal Company at Shanghai and elsewhere, stands on an entirely different footing. It is to the establishment of these stations by the Federal Company that the Japanese Government felt constrained to take exception as an infringement of the contractual right already acquired by the Mitsui Company from the Chinese Government. As a question of law, the Japanese Government still hold to the belief expressed in their previous communication that such contractual right of the Mitsui Company as opposed to the claim of the Federal Company, is not inconsistent, either with treaty provisions between the United States and China, or with the principle of equal opportunity, and finds ample support in a series of international precedents.

4. It seems that this distinction of legal status, between the Mitsui station at Peking and the proposed Federal stations, has not been taken into account in the plan of adjustment suggested in the Memorandum of April 8, 1925, as a substitute for that which is embodied in the Japanese Embassy’s Memorandum of December 24, 1924. Maintaining the claim of the Federal Company to establish radio stations in China in disregard of the exclusive right previously granted by the Chinese Government to the Mitsui Company, the American counter-project proceeds to divide radio business between the two companies. The plan formulated by the American Government is simply an operating arrangement and it assumes the complete abandonment by the Mitsui Company of its legal position relative to the establishment of radio stations in China, without any corresponding concession on the part of the Federal Company.

5. It would appear further that the American counter-project is intended to secure for the Federal Company the exclusive control of all radio stations to be constructed by the company as well as a monopoly of the radio service between the United States and China. Upon careful review of the whole question, the Japanese Government have now reached the conclusion that such an arrangement would not make for the maintenance of China’s administrative integrity or for the extension of fair and impartial treatment of the other Powers equally interested in the question. On the contrary, it seems likely to revive the international rivalry and misunderstanding that in the past have proved so harmful to the stabilization of China.

6. Again, the Japanese Government are not convinced of the immediate need for China, in the present state of her economic and financial conditions, for two or more high power radio stations for external communications. The expenditure to be charged to China under the Federal contract can not fail to intensify the strain on her already overburdened treasury. Experience in many countries has shown that, as purely commercial undertaking, radio communication is not financially profitable, at least for a number of years after its initiation.

7. In the memorandum of the State Department of February 28, 1925, the American Government reserved discussion on the arrangement proposed by the Japanese Government, unless and until its acceptability to China shall have been reasonably assured. It will be recalled that the Japanese project is a measure of mutual promise [compromise] calculated to remove from the field of radio communication all features of foreign control and of monopoly, and also to relieve China of what seems to be an unnecessary addition to her financial burden. Considering that these terms are more favourable to China and in fuller accord with her true interests than are those of the American counter-project, the Japanese Government have indulged the confident hope that their proposal will eventually be found acceptable to the Chinese Government.

8. The Japanese Government, however, do not feel themselves at liberty to make any overtures to China for the settlement of the question, without the full understanding and cooperation of the United States. They fear that if they took such independent action at Peking, it would place the Chinese Government in an embarrassing position, and would, moreover, be a fruitful source of popular misgiving. It seems to the Japanese Government only natural and more likely to attain the desired result, that the parties having conflicting claims to the radio enterprise in China should first agree between themselves, at least upon the general principles governing the adjustment of these claims, subject to the approval of the Chinese Government.

9. Doubt is expressed by the American Government as to the feasibility of the Japanese proposals. The Japanese Government will welcome any suggestion for the modification of such terms of their proposals as may appear unworkable to the American Government. But, they place great importance upon the elimination from any radio arrangements in China of such features of foreign control or of monopoly as the counter-proposals of the American Government would appear to involve. They further re-emphasize the point that they deem it highly desirable, for China and for all Powers interested in that country, to adopt such a solution as will lighten her financial liability.

10. The question of radio facilities in China formed a subject of discussion at the Washington Conference, and the British and French Governments, which took active part in that discussion, are no doubt keenly interested in the outcome of the present exchange of views between Tokio and Washington. Accordingly, it has occurred to the Japanese Government that if it is more essentially the matter of feasibility than any question of principle, which seems unconvincing to the American Government in the consideration of the Japanese proposals submitted on December 24, 1924, it might be useful to call a meeting of representatives of the American, British, French and Japanese radio interests, with instructions to examine in common accord the feasibility of the Japanese proposals, and to work out detailed terms of adjustment for recommendation to their respective Governments.

In making this suggestion, the Japanese Government have no other desire than to reach a practical solution of the difficulty that will best serve the lasting interests of China and will at the same time secure friendly cooperation among the Powers interested in radio enterprise in that country.

Washington , June 1, 1925.