Office of the Historian

893.74/586: Telegram

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

Peking, July 29, 1925—7 p.m.
[Received July 29—5:45 p.m.]

299. Federal wireless.

1.
At a recent interview with the Minister for Foreign Affairs I asked for special appointment to discuss wireless question and he expressed a desire to know the purpose of my conversation with [Page 912] Japanese Minister for Foreign Affairs of which he had obviously been informed.
2.
Afternoon July 27th I recounted to him frankly the substance of that conversation which was reported in Tokyo’s 117 July 1, noon and in my comment laid emphasis upon the following points: (a) Japanese contract has been extended whereas ours has not although entered into in good faith by both American and Chinese parties with full knowledge of Japanese pretensions of monopoly; (b) American interests thus placed at strategic disadvantage in upholding principles which both we and Chinese Government had in view; (c) American Government and radio interests not antagonistic to legitimate rights of Japanese or other interests but anxious only to obtain direct and unstraddled [untrammelled?] means of communication and consequent better understanding between two peoples; (d) though Japanese perhaps willing to come to eventual accommodation of conflicting interests, it would be expecting too much of human nature to suppose that they will seek or go very far to meet us in an accommodation giving us what we desire so long as they are in possession of a station and we have nothing but a bare paper standing; (e) we cannot meet the Japanese on equal terms in this matter until the Chinese have given effect to our contract rights as they have to those of the Japanese; (f) once the Chinese have enabled the American contract to proceed, our radio interests have assured me of their readiness to meet the Japanese in negotiations designed to reconcile the conserved [sic] interests of Radio Corporation and Mitsui Company by traffic arrangements subject to the approval of the Chinese Government which would assure the latter company of profits at least equal to those desirable from their Peking station under existing conditions.
3.
Minister for Foreign Affairs first proposed we should adjust our differences with the Japanese before asking further attention to the matter on the part of the Chinese. I told him I saw no prospect of a satisfactory adjustment until the Chinese gave our interests the locus standi to which they were entitled by the terms of their contracts.
4.
He then suggested that the Chinese might propose to the two conflicting national interests some basis of accommodation. I pointed out that no such proposal could well be fair to us so long as we occupied a merely theoretical position while the Japanese had a station actually functioning.

[Paraphrase]

5.
Information from a source considered reliable has come to representatives of the Federal Telegraph Company that this matter was taken up today by the Minister for Foreign Affairs with Tuan Chi-jui, [Page 913] emphasizing that we are not at present negotiating with the Japanese and under existing conditions do not foresee possibility of reaching a satisfactory understanding with them. It is reported that Tuan has said that the Chinese Government would take up the question with the Japanese if the Americans and Japanese could not come to an agreement.
6.
If this proves to be true we will be confronted by a clear disregard of our contract rights and there will be little if any likelihood of obtaining a reconsideration … It may be necessary in that case to decide whether to induce the Chinese to submit proposals to the Radio Corporation and Mitsui Company for the accommodation of their conflicting interests or to authorize the Radio Corporation to negotiate directly with the Mitsui Company for arrangements on a business basis. Arrangements of this nature would not recognize any monopoly and would include the setting up of an independent American-Chinese circuit.
7.
Possibly the Chinese Minister at Washington might be persuaded to telegraph his Government and to point out the seriousness of subordinating valid American rights to the veto of Japan.
8.
Repeated as No. 72 to Tokyo.
MacMurray