893.74/617: Telegram
The Minister in China (MacMurray) to the Secretary of State
[Received September 29—11:05 a.m.]
422. Following for Radio Corporation for [from] Davis:
“Modified agreement containing clarification paragraphs will possibly be signed soon, the American Government agreeing that when our contracts are in course of performance we will meet Chinese and Japanese to discuss an arrangement for cooperation. Contracts will be deemed in course of performance when modified agreement is signed and delivered, when orders are issued to Chinese Minister at Washington to sign and when necessary orders are issued to enable us to come into possession of lands for Shanghai stations. Sze’s absence may delay actual delivery, hence Chinese request that we do not refuse to meet Japanese until bonds actually in hand. Cooperation should be possible by applying following principles: separate managements, division of gross receipts on fair basis, apportionment of wireless stations of world as correspondents, and periodic correction of apportionment. Have informed Lucas. I am without [Page 930] authority to enter such negotiations and could not conclude them without assistance of engineering and traffic expert. Will Federal Company be prepared, on short notice, to authorize me to enter such negotiations, or to select another purpose [person?], and to send Reoch or another expert? These negotiations may help us through by giving face to both Japanese and Chinese.”