CO129-470 - Public Offices - 1921 — Page 330

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the Ministry of Communications, and is signed on behalf of Marconi's Wireless Telegraph Company (Limited), by its duly authorised Attorney.

TSAOJOULIN,

(Marconi's Wireless Telegraph

Company, Limited),

A. H. GINMAN,

Attorney-in-fact,

Minister of Communications.

In the presence of:

In the presence of:

CHOWKIANI, Witness.

G. W. FRODSHAM, Witness.

Enclosure 5.

Sir,

Sir J. Jordan to Wai-chiao Pu.

October 28, 1918. ON the 30th August and 23rd October your Excellency was good enough to communicate to me copies of agreements made by the Ministry of War and the Ministry of Communications respectively. with the Marconi Wireless Telegraph Company (Limited), for the purchase of wireless telephone and telegraph apparatus. now have the honour to inform your Excellency that the agreements in question have been duly placed on record as requested.

I avail. &c.

(Translation.)

Sir,

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Enclosure 1.

Wai-Chino Pu to Sir J. Jordan,

June 4, 1919 I have the honour to inform your Excellency that I have received a letter from the Ministry of War in the following terms: --

The Agreement which has been drawn up between this Ministry and the British firm the Marconi Wireless Telegraph Company, Limited, for the formation of the Chinese National Wireless Telegraph Company was passed by the Cabinet at a meeting on the 24th ultimo.* Subsequently some verbal amendments to the text were made by the representatives of both parties and the Agreement was formally signed on the 24th instant. I have the honour to enclose herewith copies of the Agreement in English and Chinese, and to request your Excellency's Ministry to forward them to the British Legation to be placed on record there.

I have the honour accordingly to forward to your Excellency herewith the English and Chinese texts of the Agreement received from the Ministry of War that you may cause them to be placed on record.

I shall be grateful for the favour of a reply.

I avail. &c.

J. N. JORDAN.

i

[111281]

(No. 259.) My Lord,

ANNEX 3.

Sir J. Jordan to Earl Curzon.-(Received August 2.)

Peking, June 5, 1919. IN my despatch No. 519 of the 25th November I had the honour to report that negotiations were already in progress for the formation of a Chinese National Wireless Company as joint enterprise of the Chinese Government and the Marconi Company. These negotiations have continued during the past six months, and I have supported the company's representative by intervention with the Minister of War as occasion required.

The Chinese Government have now fulfilled the undertaking given in Article 12 of the Marconi Company's Wireless Telephone Agreement of the 27th August, 1918, and on the 24th ultimo the agreement for the constitution of the Chinese National Wireless Company was signed with the Marconi Company's representative, and was officially communicated to me by the Wai-Chiao Pa on the 4th instant in a note, copy of which is enclosed.

The capital of the company is to be 700,0007, (200,000. paid up), divided equally between the Chinese Government and the Marconi Company; the Marconi Company receive two-thirds of the profits in return for a grant of their patent rights to the Chinese Company, and the control is vested in a Board of Directors consisting of three nominees of the Government and three nominees of the Marconi Company, the latter enjoying a casting vote so long as the Government is indebted to them. The Chinese Company, under Article 6, acquire an exclusive right to supply the Chinese Government's requirements in the supply and maintenance of wireless apparatus. and the Chinese Government have the right to buy out the Marconi interest at any time after twenty years.

As far as paper agreements go, the task of establishing the Marconi Company in the wireless field in China may now be said to be complete, and they have secured a position which should enable them to compete successfully with rivals of any other nationality Competition will undoubtedly be severe; not only will the German and Japanese interests endeavour to maintain their existing foothold, but French interests, through the Government of Tonquin, are also believed to, have recently concluded an agreement with the Governor of Yunnan for the supply of one high and several low-power stations in the areas at present under the control of the military Government in the south-west.

The Marconi Company, by the present agreement, should be able to meet practi- cally any competition as soon as a united Government is formed, and it now rests with them to make the best of a future which is not without promise for the expansion of British enterprise in China.

I have, &c.

J. N. JORDAN.

Enclosure 2.

Agreement: Chinese National Wireless Telegraph Company.

*4

THIS agreement, made on this 24th day of May, 1919. or the 24th day of the 5th month of the eighth year of the Republic of China, at Peking, China, by and between the Government of the Republic of China, represented by the Ministry of War of the one part, hereinafter referred to as the Government," and Marconi's Wireless Telegraph Company (Limited). a limited liability company, organised under the Company Laws of England, and having its registered office at Marconi House, Strand, London, of the second part, hereinafter referred to as the Marconi Company."

Witnesseth that:

Whereas in clause 12 of an agreement between the parties hereto, bearing date the 27th day of August, 1918, or the 27th day of the 8th month of the 7th year of the Republic of China, it, was provided as follows:-

**

In consideration of the above the Government promises that in the event the Government decides to establish a repair shop or factory for the maintenance of wireless installations in China, or for the manufacture of wireless apparatus, the Government will first open discussion with the company with a view of arranging joint operation of such factory by the Government and the company.

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Now, therefore, the parties hereto having, in pursuance of the above permission. duly discussed arrangements for joint operation, it is, in consideration of the mutual benefits to be derived therefrom, hereby understood and agreed as follows-

1. A joint stock limited liability company, under the terms and conditions hereinafter contained, is hereby constituted of which this agreement as and when communicated to His Britannic Majesty's Minister at Peking through the Ministry of Foreign Affairs, shall form the special charter. The terms and conditions of this agreement as such special charter may not be hereafter varied save by the mutual consent of the parties hereto, expressed with the same formality as attends the execution and communication of these presents.

LL

2.-(.) The said company shall be known as the Chinese National Wireless Telegraph Company (hereinafter referred to as the Chinese Company ").

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(b) After this agreement has been in force for a period of twenty years and at any time thereafter, if the Government wishes, it will have the right to exercise either one of the two following options:

First, the Government will have the right to purchase at a fair and reasonable price under conditions then existing all the shares of the Marconi Company, its

Should be April 24.

+ Should be May 24.

[5651]

D

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