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National Wireless Telegraph Company, presumably for the setting up and working of the above-mentioned wireless factory.

"The Japanese", writes Sir J. Jordan, "are paying very close attention to the above-mentioned Karooni negotiations, which, if successful, should materially diminish the Japanese hold over wireless telegraphy in the internal communications

of China".

This last despatch of Sir J. Jordan's, which I had not seen at the time of the meeting of the Eastern Committee on the 1st July, appears to establish a point in regard to which I felt considerable misgivings, viz., that the hold acquired by the Japanese over the wireless telegraphy system of China is by no

In means as far-reaching as we were at first led to believe, fact, so far as we can judge, the prospects of the Marconi Company are just as good, if not better.

Their remains, however, the fact that the Japanese Tele- graph Loan comprises the establishment of a wireless station at Batang, and it was the establishment of this station which, in the opinion of the Indie Office (see their letter of the 4th October, 1918, 167211), placed the Chinese Goverment in a posi- tion of great advantage over the Indian Government as regards facilities for telegraphic communication with Eastern Mbet and caused them to suggest, as a means of countering the Japanese project, the connection by wireless of Lhasa and Gyantae with some suitable spot in Eastern Tibet, which resulted in the pro- posal of the Indian Government to present the Thibetan Government with two wireless installations, one for Lhasa and one for use

in Eastern Thibet.

In spite of the fact that we are now in possession through secret channels of the text of the Mitsui Agreement, and of a memorandum which accompanied the Japanese Telegraph Loan Agree- ment, though not of the agreement itself, I still consider the

course/

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