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5. It is now abundantly clear that the Japanese did not obtain a monopoly of wireless telegraphy in China under the Mitsui Agreement, as was at one time feared, but only a con-
But in the memorandum to tract for one high-power station.
the Telegraph Loan Agreement mention is made of five new wirs- less stations, and as these are to be financed from Japanese money, it may fairly be inferred that a further advance of Japanese control over wireless in China is aimed at.
6. The Chinese Goverment have been informed that His Majesty's Government will object to any Telefunken stations
I have not been able to ascertain near the Indian frontier. whether this was done by Sir J. Jordan recently, or at some earlier date in connection with the schemes of the German Telefunken Company. I am having a search made in the earlier archives. However, the important point is that the Chinese
Government are aware of our attitude.
The Director-General of Telegraphs has approached the Marconi Company with a project for adapting to the Marconi system the four Telefunken stations secretly delivered in
1917;
this proposal will probably be carried out if the negotiations for the Sino-foreign wireless factory prove
successful.
8. The Marconi Company have already obtained:-
(a) A concession for supplying wireless telephones for the Chinese Ministry of War for ten years.
(b) A concession for a chain of wireless stations connec-
ting Peking and Kashgar,
(c) A first option for the construction of a Sino-foreign
wireless factory in China,
9. Negotiations have commended for the formation by the Chinese Goverment and the Marconi Company of a Chinese
National/
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