This Document is the Property of His Britannic Majesty's Government.
CHINESE LOANS AND CONCESSIONS.
CONFIDENTIAL.
[February 24.]
SECTION 1.
F 670/181/107
No. 1.
War Office to Foreign Office.-(Received February 24.)
(Confidential.) Sir,
London, February 23, 1921.
I AM commanded by the Army Council to refer to your letter dated the 26th January, 1921, forwarding a copy of a letter addressed to the Postmaster-General and other correspondence, and to acquaint you, for the information of Earl Curzon of Kedleston, that this question has been under careful consideration.
I am to say that, as regards wireless telegraphic communications, the Council is of opinion that the Imperial wireless telegraph chain, which the Wireless Commission appointed by Lord Milner now have in hand, should fulfil all military requirements in long-distance wireless communication.
Provided, therefore, that nothing occurs to delay this scheme, the Council, although realising that the Marconi Company will incur a severe loss, does not feel justified on military grounds in pressing for a British monopoly in these circumstances.
As regards the cable communications, the Council consider the extension of British-owned cables to Chifu, whence communication is obtained with Wei-hai Wei, very desirable from a military point of view, and think that the Eastern Extension Telegraph Company should be supported in their project.
In conclusion, I am to say that in the opinion of the Army Council there are no British military issues of sufficient importance to justify a risk of causing friction either with Japan or America, and further that, although the provision of the British-owned cable between Hong Kong and Chifu is desirable, it does not appear of sufficient importance to justify bringing such pressure as would be likely to lead to strained relations with Japan.
I am, &c.
B. B. CUBITT.
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