793.94/2122
Memorandum by the Chief of the Division of Far Eastern Affairs (Hornbeck) of a Conversation With Colonel Manton Davis of the Radio Corporation of America
Colonel Davis called me from New York by telephone. He said that the Radio Corporation is informed by its agent in Shanghai that the [Page 103] Chinese Government radio station at Mukden has been examined by a representative of the Radio Corporation and is found to be in such condition that, with a few hours’ work it could be prepared again to operate; and that the Japanese are contemplating reopening it under Japanese operation. He said that the Japanese have demanded that they be given a copy of the contract concluded and in effect between the Chinese authorities and the Radio Corporation. (Note: A statement to this effect appeared in the news despatches this morning.)
Colonel Davis asked for advice with regard to complying with the Japanese demand for a copy of the contract. He said that he felt that compliance or non-compliance involved considerations of state. I said that it might be assumed that there were at least two questions involved: first, was there any reason on the part of the Radio Corporation, on the basis of the contract, which would cause the Corporation to desire that the text be not known to the Japanese; second, from point of view of policy, the question would arise whether it is expedient to comply. Colonel Davis said that there was no objection to the text being made known to the Japanese, but he indicated his view that the Japanese had no right to demand that a text be given them.
After some discussion, it was decided that the Radio Corporation should instruct its Shanghai agent to send to the American Consul General at Mukden a copy of the contract, so that a copy might be in the Consul General’s hands for disposal in accordance with instructions as and when given.
It happens that the Department had at an earlier hour this morning telegraphed to Mukden asking for a report on the present condition and status of the radio station.
It may be expected that the Department will be informed probably along the lines of the statement made by Colonel Davis as recorded above. If we are informed that the Japanese intend to operate this station (Chinese-owned) and that they have demanded a copy of the contract, it will be necessary to decide (a) whether the Department will authorize the Consul General to communicate to the Japanese a copy of the contract and (b) what attitude the Department will take on the question of retention of control and assumption of operating functions in relation to this station by the Japanese.