CO129-470 - Public Offices - 1921 — Page 285

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above) to the Mardoni Company. Simultaneously the finės 283 published a message from Paking, of January 17th, to the affect that the contrast was actually concluded, that it was with the American Federal Wireless Company of San Francisco, and that it was for the installation of a high-power station at Shanghai with subsidiary stations at Shanghai, Canton, Peking and Harbin, at a cost of £1,000,000; on the security of the revenue from these stations and complete control over them for ten years.

The matter was discussed with Mr. Godfrey Isaacs, the Managing Director of the Marconi Company, from whom it was ascertained that not only was the contract a breach of theliero oni agreement with the Chinese Goverment but that it also involved the pirating by the Amorioan Company of certain of the Marconi rights to which they had exclusive right outside of America by an arrangement made with the merican owners. Mr. Isaaqs claimed

5.

to have information that the Federal Wireless Telegraph Company was a moribund concern which had been specially revived by the American Goverment in order to challenge the predominant position which British interests had succeeded in obtaining in China. 6. Bir B. Alston was authorised to make the strongest representations to the Chinese Government, pointing out that it would be impossible for British firms to do further business with them if they showed such complete disregard of their solenn obligation. On these instructions Sir B. Alaton has acted with

vigour, and the net result is that the matter is held up pending a discussion between us and the Americans, apparently at Washington

7. So far we have sent no instructions to the Embassy at

Washington, and it would be premature to do so pending the receipt

of the views of the Imperial Communications Committee to whom

the whole matter, together with the cognate question of the Cabl

Companies' monopoly, has been submitted.

February 12th 1921.