893.74/711: Telegram

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

[Paraphrase]

335. My telegram 243, June 11.

1.
Assuming that the conclusion of the “clarification agreement” is merely a technical negotiation of protective agreements not involving [Page 1067] such new obligations by China as would require a recognized government as a necessary condition precedent to a judgment of validity, and proceeding for our part on that assumption, I had a long talk yesterday with the Acting Minister for Foreign Affairs, Admiral Tsai. I explained our views in full on the economic and political hearings of the Federal contract. On his part he gave no indication of desiring to associate the question of recognition with the Federal wireless contract.
2.
He appeared to understand the significance of carrying out the Federal contract as a concrete application of the principle of the open door, and he gave some reason to me to hope that he, in behalf of the Foreign Office, will give his assent in the near future to signature of clarification agreement now being awaited by Ministry of Communications.
3.
In the conversation I reiterated the assurance to him that when once the clarification agreement was signed and necessary orders given regarding land and bonds, the Chinese may notify the Mitsui Company immediately that the American radio interests and the Chinese Ministry are prepared to meet with the Japanese interests in a tripartite conference with a view to arriving at a solution of the problem along lines such as Davis has suggested.
4.
I also took occasion to intimate to him that the moment is nearing when Radio Corporation will have to look after its own interests by means of arrangements elsewhere, in case the Chinese fail to make use of the opportunity which still is open to them. Since the Cabinet has a somewhat indeterminate status and its duration is probably brief, it seemed to me to be injudicious to make a more categorical statement.
MacMurray