:
(7).
and an assignment of the same date was subject to an
understanding that the Corporation shall not be
entitled to establish or participate in establishing
wireless telegraphy or telephony in any country
other than those specified in the agreement. As
according to my information the Poulsen Wireless
Corporation, after acquiring American Poulsen rights,
formed the Federal Telegraph Company to exploit
those rights, there can be no doubt that the latter Company are equally bound by the obligation of the
Corporation under their agreement and assignment
with the vendors. Position of Marconi Compary is
that it has a controlling interest in the Poulsen
Wireless Telegraph Company, an English Company
which has acquired the Poulsen rights outside
United States and United States territory and
certain European countries remaining in the hands
of a Danish company, If Federal Company make use of Poulsen patents in China they would apparently
commit a breach of agreement, and His Majesty's
Government hesitate to believe that they would be supported by the United States Government in such
a course.
His Majesty's Government will always be ready to consider any proposal United States Government may like to make towards substituting international co-operation for international competition in China, and wish in no way to limit the field to which the principle can advantageously be applied.
Repeated to Washington No. 219.
555