811.7493 Globe Wireless/59: Telegram

The Consul General at Shanghai (Gauss) to the Secretary of State

81. Reference Department’s Number 9, January 7, 3 p.m., regarding Globe Wireless. Some days ago after consulting the Globe representative I informed the Japanese Consul General orally that that representative was prepared to discuss matters with the Japanese authorities but upon approaching contacts in the Japanese communications service had been informed that the Japanese were too busy to discuss the matter at this time. Japanese Consul General later told me that the company representative had approached a Japanese technical engineer who is not concerned in the matter and that the company representative should discuss [it?] with Consul Ishiguro of his staff. This information was communicated to Globe representative who, after some delay, has now told me that having ascertained that the Japanese opposition to his company was instigated by his American competitors, that is, R. C. A., Mackay, and Commercial Pacific Cable Company, for the present he does not intend to enter into any conversations with the Japanese Consul.

While I have no doubt that the American radio and cable interests at Shanghai have resented the action of the Globe Company in elbowing itself into this field and cutting rates, I am of the opinion that it is a mistake to suppose that the opposition comes from that source or that source alone. The Japanese military are not likely long to tolerate an independent radio service established under permit recently issued by the Chinese Government, competing with the Chinese Government radio monopoly now under Japanese control, avoiding censorship, and cutting rates. It is simply a question as to when and how they may decide to take action to suppress the Globe operations.
The willingness of the Chinese Government to enter into contracts with the Globe and other companies undoubtedly arises out of a desire to embarrass the foreign radio and cable interests at Shanghai which have had to submit to some measure of Japanese supervision [Page 270] and in my opinion a desire to encourage conflict between American and other foreign interests and the Japanese authorities.