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of British competition in a field of such national importançe

The eventual justification as that of wireless communications.

will be found if and when the option on a Sino-foreign wireless factory can be translated into fact, and the supremacy of the Marconi system thereby established in this country".

Present Position.

(As indicated in Sir J. Jordan's despatch No.104 of the

15th March; received 28th June, 1919).

1. Japan (Hitaui Company) has secured the former Larsen Agreement for the erection of a single high-power wireless atation, capable of communicating with Japan, America,

Europe.

2.

and

With regard to the cable companies' claim, the terms of the Mitsui Agreement are not very clear, but they appear to mean that Japan is to assist the Chinese Government to force an arrangement with those companies, and shall retain control of the station until such an arrangement is made.

According to Sir J. Jordan, the question before His Majesty's Goverment is whether to protest now in the name of the cable companies against the erection of a high-power wire- less station designed for external communication, or wait until the station is erected and the contemplated arrangement with the

Sir J. Jordan advise2 cable companies is under negotiation,

waiting.

3. The Japanese are pressing for execution of the Mitsui Agreement, and have selected a site for the station at Tung chow, 14 miles east of Peking, but they are encountering difficulties

with the Chinese.

4. It is doubtful whether the Japanese are capable of erecting a high-power station of the capacity required.

may be forced to call in foreign assistance

the Marconi Company.

They

perhaps that of

5./

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