1

F 181/181/10).

228

Paraphrase of telegram No.49 to Sir B.Alston (Peking)

January 28th.

URGENT.

Keferring to telegram No.20 from you.

I will send you final instructions at the earliest op- portunity as consultation on the subject is at present pro-

ceeding with other departments concerned,

Meanwhile Mr. Bullard should arrive in China by the end of February as he is going at ones to Peking via United States

of America.

Referring to American contract, we are informed by Mr. Issage that American Federal Company are the contracting Company in question and that they were in a bad state; he thinks American Government have again put them on a sound footing for the special purpose of doing away with the pre- ferential position which, under Chinese National Wireless Telegraph Company's charter, is held by Marconis.

The Fols91. arc system must be used by thie Company and

this system is the sole property of Marconi Company anywhere outside America such being the arrangement specially made.

-

Marconi rights in Chins will in other words be pirated in China and thus will the contract be fulfilled and Mr. Iseace can see no way in which an effectual stop can be put to such a proceeding as no effective patent right exists in

Chine.

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