810.74/471a: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
4493. A representative of the British Embassy, came in this afternoon to suggest, on instructions from his Government, that Wilshaw is anxious to be of assistance in closing the circuits but thought that the trustees of the Consortium ought to express some agreement with the action indicated and suggested that Ginman, who represented the British members of the Consortium at their recent meeting, should be consulted by General Davis.
It was explained that that was at variance with the theory upon which we were operating to close the beams of the two stations concerned. General Davis was the Chairman of the Consortium which was composed of German and French as well as British and American members. The business could not be considered at a Consortium meeting except after 30 days notice. It was not considered either necessary or advisable to bring the Consortium into it. Consequently, it was inadvisable to have Davis consult Ginman as both were operating in connection with the Consortium group. As distinguished from that, the present movement is to have the American member, which happens to be R. C. A., communicate directly with its representatives on the Boards of Directors of the two local companies and instruct them to take action looking to the immediate closing of the two stations. It was hoped, and is still expected, that the British member, Cables and Wireless, will take the same action in regard to its own representatives on the Boards of each of these companies. The British and American members control a majority on each Board.
Consequently, it is hoped that Cables and Wireless will send instructions direct to its own representatives in the sense of the instructions which they have been advised are being sent to the American representatives.
While it would be contrary to the theory of our operation to have Davis confer with Ginman and the suggestion that Ginman should report to London, it would be quite in keeping with the spirit if Cables and Wireless should communicate directly with Ginman if they so desired, but the effort is being made for definite political reasons to have the initiative taken and the action consummated by act of the local companies acting at the instigation of their respective superiors who are the owners of the American and British interests.
The texts of the telegrams to be forwarded on behalf of R. C. A. are in the Department but are being held until after a meeting of the Board of Directors in B. A. scheduled for the 25th of September at [Page 149] which Hayes is expected to be elected manager. As soon as that has transpired, the telegrams both to B. A. and Santiago will be dispatched simultaneously. Of course, you will appreciate the confidential nature of this information which you may in your discretion communicate to the British. It was not divulged to the representative of the British Embassy this afternoon.
You are requested to continue your contacts with the Foreign Office in this particular matter and bend your efforts to secure the influence of the British Government upon Cables and Wireless to have instructions sent along the lines indicated. If the action develops as we anticipate, it may be necessary for the American and British Governments to act simultaneously and along similar lines in supporting the action of the British and American members of the local Boards of Directors. That contingency is assumed to have been taken care of in the instructions which we understand have been sent by the British Embassy to its Ambassadors and which we have sent to our Ambassadors at those respective capitals.