893.76/99
The Consul General at Shanghai (Lockhart) to the Secretary of State
[Received June 20.]
Sir: I have the honor to refer to my despatch no. 1384 of April 26, 1938,17 concerning the progress of Japanese plans to establish a powerful [Page 324] transmitter on the outskirts of Shanghai capable of direct radio communication with the United States and Europe.
For the further information of the Department there is transmitted a copy of a letter dated May 11, 1938, together with the enclosure thereto, received from the Mackay Radio and Telegraph Company. It will be noted that the Japanese have created several transmitters for the purpose of operating a direct service with the United States, that successful tests have been conducted and that the Communications Attaché of the Japanese Army has approached the Mackay Radio and Telegraph Company and requested permission to use the company’s circuit for this service on the same terms and conditions as formerly were in force with the Chinese Ministry of Communications. It was subsequently learned that the Japanese had addressed a similar request to R. C. A. Communications, Inc., and that both companies had agreed to permit the Japanese to open a direct service over their circuits on the same terms and conditions as previously in force. The service was inaugurated on May 14, 1938, and is reported to be functioning in a moderately successful manner.
With reference to Japanese plans, mentioned in my despatch no. 1384 of April 26th, to establish a communications company to control all Japanese radio, telegraph and cable activities in this area, it is understood from R. C. A. Communications, Inc., that no company has yet been formed. This appears to be due in large measure to the fact that three different Japanese groups, namely, the Japanese military, Japanese commercial radio and cable interests, and the Japanese Ministry of Communications, are involved and thus far have not been able to compose their differences and reach an agreement as to the composition of the company, the exercise of control and other pertinent matters.
With reference to the final paragraph of the letter from the Mackay Radio and Telegraph Company regarding a plan whereby it was proposed that the British Radio Company of Shanghai should work with the Globe Wireless Company, it has been learned from a representative of the Robert Dollar Company, which owns and controls the Globe Wireless Company, that the contemplated arrangement has in fact been abandoned. However, it was stated that the Robert Dollar Company is still negotiating with the Chinese Ministry of Communications for permission to operate a service to the United States through the Globe Wireless Company, as mentioned in this office’s despatch No. 1322 of April 4, 1938.19
Respectfully yours,