013
ܵܬܐ،
This Document is the Property of His Britannic Majesty's Government.]
CHINESE LOANS AND CONCESSIONS.
CONFIDENTIAL.
211
[August 2.
SECTION 6.
[111281)
No. 1.
Potes fr?
Sir J. Jordan to Earl Curzon. (Received August 2.)
(No. 259.) My Lord,
Peking, June 5, 1919. IN my despatch No. 519 of the 25th November I had the honour to report that negotiations were already in progress for the formation of a Chinese National Wireless Company as a joint enterprise of the Chinese Government and the Marconi Company. These negotiations have continued during the past six months, and I have supported the company's representative by intervention with the Minister of War as occasion required.
The Chinese Government have now fulfilled the undertaking given in Article 12 of the Marconi Company's Wireless Telephone Agreement of the 27th August, 1918, and on the 24th ultimo the agreement for the constitution of the Chinese National Wireless Company was signed with the Marconi Company's representative, and was officially communicated to me by the Wai-Chiao Pu ou the 4th instant in a note, copy of which is enclosed.
The capital of the company is to be 700,000l. (200,000l. paid up), divided equally between the Chinese Government and the Marconi Company; the Marconi Company receive two-thirds of the profits in return for a grant of their patent rights to the Chinese Company, and the control is vested in a Board of Directors consisting of three nominees of the Government and three nominees of the Marconi Company, the latter enjoying a casting vote so long as the Government is indebted to them. The Chinese Company, under Article 6, acquire an exclusive right to supply the Chinese Govern- ment's requirements in the supply and maintenance of wireless apparatus, and the Chinese Government have the right to buy out the Marconi interest at any time after twenty years.
As far as paper agreements go, the task of establishing the Marconi Company in the wireless field in China may now be said to be complete, and they have secured a position which should enable them to compete successfully with rivals of any other nationality. Competition will undoubtedly be severe; not only will the German and Japanese interests endeavour to maintain their existing foothold, but French interests, through the Government of Tonquin, are also believed to have recently concluded an agreement with the Governor of Yunnan for the supply of one high and several low-power stations in the areas at present under the control of the military Government in the south-west. The Marconi Company, by the present agreement, should be able to meet practically any competition as soon as a united Government is formed, and it now rests with them to make the best of a future which is not without promise for the expansion of British enterprise in China.
I have, &c.
(Translation.) Sir,
Enclosure 1 in No. 1.
Wai-Chiao Pu to Sir J. Jordan.
J. N. JORDAN.
June 4, 1919.
I have the honour to inform your Excellency that I have received a letter from the Ministry of War in the following terms:-
"The Agreement which has been drawn up between this Ministry and the British firm the Marconi Wireless Telegraph Company, Limited, for the formation of the Chinese National Wireless Telegraph Company was passed by the Cabinet at a meeting on the 24 ultimo,* Subsequently some verbal amendments to the text were made by the representatives of both parties and the Agreement was formally signed on the 24th instant. I have the honour to enclose herewith copies of the Agreement in English
* Should be April 24.
↑ Should be May 24.
[541-56]