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Copy.

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Paraphrase of telegram No.75 from Sir B. Alston, (Peking).

February 7th, 1921.

I went to sent Minister for Foreign Affairs about American

comtract as soon as I received your telegram No.49.

The statements Ministry of Communications had made to me

before were repeated to me then by His Excellency. Those were:-

1. Only internal wireless communication was provided for by

Marconi agrement, 2. Material specified for High Power

Stations cannot be provided by Karconi Company under American

contract because 1000 Killowatt Stations cannot be obtained from

any place other than Federal Company whose invention they are.

I told Minister for Foreign Affairs that those objections

were merely idle and untrue because Chinese National Company

(erected under Marconi agreement) had for some time past been

trying to get high power stations erected. We discussed the

question for some time and I said that both Minister of Communi-

cations and himself had assumed such an unsatisfactory attitude

that I must request an interview with Prime Minister before

Chinese New Year holiday which commences today.

I told my

United States Colleague of the action I was taking.

On Saturday afternoon 5th instant I saw Prime Minister and repeated for him history of Marconi negotiations which Minister

of War when in charge of that department, had concluded.

I explained that American contract infringing Marconi rights and asked most seriously if he held the good name of China in any esteem and wished to continue on good terms with Great Brita to postpone conclusion of American contract until we had invest- gated and cleared up the points on which we differed as regards obligations of Chinese Goverment towards Cable companies and

towards Marconi Company.

The/

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