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for all orders of the Chinese overment for wireless equipment. The company is the direct offenring of the Marconi Wireless Telephone Contract (see 3 above ).
16. The views of r. Olive, His Majesty's Chargé d'Affaires at Peking, on the contents of Sir John Pender's letter of catcher 22nd have been obtained, and the essential points in these are
18 follows:-
17. (1) The extension of the companies' monopoly is olitically desirable, and probably essential if our position in tele raphy in the far west is to be maintained.
10. (2) our former position has been seriously impaired by Japaness competition, and the recent action of the Chinese feleraph Administration in purchasing an unsuitable cable from Japan on the advice of their Japanese employees, and against the advice of the cable companies, showg that Japan is determined to take full vantage of the privileged position secured by her
unler her loanjagreement.
19. (3) Any extension of cable runopoly must, however, take into consideration the present day enviroments of the comercial community in China, which call for wireless and cable facilities, and such a monopoly must operate as not to preclude the development of wireless by the Chinese Government under British auspices. At the recent conference of the British Chamber of Commerce at Shanghai, the question of wirelesa facilities was discussed, and the present opportunity would seem muitable for a reconsideration of the British ouble and wireless vested interests in China as represented by the stern axtension and harconi companies.
20. (4) It is to be remembered that cable monopoly in itself only affords nertial protection to any British predominance, since American, Jermen, Dutch and Japanese landiin; rights have all had to bu muccessively admitted, and the interests in Japan of the
Northern
Northern Commany render the latter as a partner of our monopoly waŋecially susceptible to Japanese presture. Moreover, since the hoɑdquirters of the Chiness Admini tration were transferred from Shanghei to Paking in 1911, the western lonmany have been handicapped by the lack of a responsible representative in Poking. It is British rather than Danish sumort which carriam woicht with the Chinese (overment, and yet in the present negotiations, with their important nolitical bearin, we are dependent on a Danish advisor, kir. drikam, in London who is in constant communication with a Danish employee at Pakines, while ilia majesty'a Lagation is not yet in a position fo ascertain either the nature of the hinese lovermenth' instructions to 1r. arlokson, or the ɗffeat on these of the nhango of Goverment which has occurred inne his departure fron
Pekin.
21. (5) The Japanese Minister has recently protested to the michinopu aprinst wohemen now under consideration for a wireless development, by the hinese National Jazy my on the round that they conflict with the Mitmui Agrégent, and the Japanese may mossibly alaim the right, under artioles 9, lu and 11 of their arement of April 1913 to be consulted with reprd to the prosta!, nuptialiona. In any caue, it in safe to namze that Japan aims at predominame in lami, cabi and -iruless telegrank inturests in China, and the issue is, therefore, a clear and comprehensive one between the Japanese and ourselven, of which the present asble monopoly extension
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