811.7493 (M) R.C.A./9
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 and after giving some account of developments in the radio situation as relating to Mukden and informing me that communication has been reestablished between the Radio Corporation’s American stations and the Mukden station, said that the Manchoukuo authorities are now pressing the Radio Corporation to sign a new contract. Those authorities sent some months ago a copy of a contract, signed by themselves, which is an exact duplicate of the old contract which the Radio Corporation has with the former (Chinese) Northeastern Telegraph Administration. During the last few weeks, the Manchoukuo authorities have sent three cables urging immediate signature [Page 288] by the Radio Corporation, two of these cables having come last week. Colonel Davis wanted guidance, first, with regard to the political situation and, second, with regard to the advisability of the Radio Corporation’s sending one of their representatives, a young man, now in China, to Mukden to confer with the Manchoukuo authorities.
After some discussion of the situation and various factors and considerations, I expressed the view, unofficially, that it would be preferable for the Radio Corporation to try to work the matter out by long distance communication; they might suggest to the Manchoukuo authorities that, as those authorities are in possession of the station and in possession of the original contract, and as the Radio Corporation’s signature is on the contract and the Corporation is willing to continue business without inquiring as to the other signature on the contract, the practical thing for all concerned would be to continue to do business without going through the formality, quite unnecessary in law, of signing a new contract. Colonel Davis and I were of one mind in feeling that an approach of that type would obviate the risks which might be incurred if a representative of the Corporation went in person to take up the matter with Manchoukuo authorities, under which circumstances a dispute might be precipitated and an issue be drawn which would result in the taking of an irrevocable decision by the Manchoukuo authorities.
Colonel Davis left saying he would try to work the thing out by long distance communication.