811.7393C73/46: Telegram
The Minister in China ( Johnson ) to the Secretary of State
[Received November 26—9:30 a.m.]
1002. Following from the Minister at Shanghai:
“November 25, 9 a.m. For the Department: Commercial Pacific Cable Company has been negotiating with the Chinese Government for continuance of cable service after December 31 when present contracts will expire. Chinese are demanding as condition of operation of cable that terminus be placed under Chinese control. It is possible that Chinese will permit office to be managed by cable company, insist on supervision and complete control over relations of company with public, same conditions being demanded of other cable companies. Commercial Pacific Cable Company will approach Department within few days to inquire as to American Government’s policy should Chinese [Page 629] Government after December 31st cut connection between cable and cable company’s offices in International Settlement for the purpose of enforcing terms. I advised local representative to do this. I told him that I thought American Government would take the position that Chinese Government had the right to control cable in Chinese territorial waters and on Chinese territory and that there was nothing that the American Government could do other than to express the hope that cable company would not be discriminated against as compared with other similar services. I understand Danish and British Governments take same attitude. Cable company objects to Chinese control of relations with the public because this will enable Chinese to direct traffic to Chinese-owned and -operated radio circuits now in or about to come into operation.”