1924-02-16 — Page 4

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7. O LABRUM. Managing Director.

WIRELESS IN CHINA

SATURDAY, FEBRUARY 16TH, 1824.

RIVAL FOREIGN INTERESTS.

POLITICAL "TANGLE,

BY THE PERING CORRESPONDENT OF **THE TIMES,*)

t

trolled and operated by the contractars

until the bonds have béon redeemed. But! the installation has cost more than double arranged figure, and China may yet find herself saddled with the actual cost of more than a million sterling: this, br it noted, for an establishment which under existing conditions admittedly cannot be operated commercially for another seven years, and controlled by a Power to whom an independent means of communication which Ching is of immense political im- portance.

POLITICAL MOTIVES.

An evil result of the competition by the Powers for commercial advantages in China is visible 10-day in the parlous con- dition of the Chinese railways. The rail ways are immensely profitable, but the The Federal contract provides for a Mering on which some of them were ron juint enterprise, China finding half the structed are so unfortunate that serious capital of G.81,617,500 (£925,500). plus financiallithealties have resulted. It can la 100,000 - £80.com), her share of the be said that had the interested Powers, additional estimated cost for purchase of combined their efforts to cure railway land, and other expenses. The stationa developutout on sound lines the mileage are to be controlled and operated by the in China to day would be twice what it is Federal Company, for ten years (since ex- and the whole system tremendons tended to 20 years), after which China Chinese rational asset, with important will have the option to buy out her part nulitical reactions and great benefit toner. But a supplementary agreement foreign trade.

signed only four months after the original The parallel betweón, railway, develop pûts a new complexion on the arrange- ment and the introduction of wiresleatment by suddenly increasing the expitali

the enterprise of G.813,000,000 tolography is not exist, but the lesson of learned in the case of the one may well (12,600,000), or two-and-a-half times maré, be applied to the other. At Washington although in the interval there was no the Powers, in effer, agreed to abstain change in values. In the absence of any from anything but legitimate economie explanation of this extraordinary in- commercial, developaunt, beneficial to crease, it may be assumed that it was Chinese and foreign interests alike. It intended so to over-capitalize the company therefore disappointing to realize that, in that purchase by China would be out of connection with wireless telegraphy, inter the question-in other words, to ensura national rivalry is resurrected and likely that American control would be main to result in an injustice to China. tained indefinitely,

America and Japan are particularly interested in the development of wireless Wh.. communications, in this country. shall say what may happen in the Pacific in the years to come! At any rate, whoso enjoys wireless facilities on the Chinese side will have a substantial ad vantage. It becomes relevant, therefore, to ask whether it is in the interests of China, that any outsider should obtain such an advantage. It is also relevant to ask whether China, which all the Powers are pledged to protect, should have im of both Powers in respect of wireless are posed upon it at heavy cost superflaus perfectly natural, and in. the circum- wireless stations controlled for all praestances prevailing in China, arguably tical purposes in perpetuity by foreign-legitimate. But it is another matter to ride rough-shod over the claims of other in the cart" parties and to put China in order to get what they want.

No doubt there is reason in the Ameri can view that, if Japan is to have wire- less in China, the United States ought to have it, too. It may also be said that if the Chinese Government had dealt fairly with the Marconi, Company thera would also be a British high-power station in this country. But the long and the short of it is that there is little present scope for wireless in China, and that to force her to spend any more on it for the private advantage of foreign Powers is simply to negative, the benevolent in

in the Washington tentious embodied Agreements.

Arq.

The history of wireless in China is short. In 1975 the Marconi Company simme preliminary agreement with the Chinese Government for the erection of a high power station, hat the outbreak of war caused the suspension of the plan, and it was agreed that when circum staners were favourable the Marconi Com- pany would be given the first opportunity of pronosing termis,

In November, 1917. 1 Danish Arm signed an agreement with the Ministry of the Navy to instal a station in China capable of communicating with Europe and America. This project was obviously German, and as a result of a protest by the Allied Ministers the contract was eau ce Bed..

cf

It is pain, of course, that there is more in this dispute than mere commer eial rivalry The Japanse Government i intensely interested in the Mitsui enter. prise, and is sharing the heavy loss en construction. The Federal Company baby" of the American scheme is the Navy Department, which has enormous interest in establishing wireless communi- The wishes cation with the China const,

China, owing to the venality of her politicians, has made a profound mess of her wireless agreements, and there is no righteous way out of the entanglement but for all concerned to pool their is terests in favour of a non-political scheme for commercial operation. Any other solution will only lead China so much farther on the downward path.

THE MITSUT CONTRACT. Three months later the Japanese firm Mitsui signed an almost identical agreement, containing the condition that during the eurrener of the loan to be provided for construction no other party northe Chinese Government itself, should be allowed to eregt a high-power station-

ITALY'S CLAIMS. in other words, a 30-year monopoly. The Brith Legation immediately protested, Signor Cesar Pome (Italian Consul, or the ground that the Mitsui agreement retired), Piazzo 34. Biella, writes to The ignored the promise made to the Marconi Tines that its Peking correspondent in Company, and because it violated the exhis articles on Wireless in China does not clusive privileges of the Northern and do justies to Italy. Be says: The first Eastern Extension cable companies, which wireless in China was established in 1903 did not expire until 1020 The Mitsui company promptly recognized the rights of the cable companie, by correspondence which way attached to an agreement.

In 1919 the Marconi Company contract ed to croct wireless stations at Lanchowfa (Kapsu). Urumchi, and Kashgar (Chinese Turkestau), and, with the exception that Trga (Mongolia) was substituted for Lunchowfu, this contract has been fulfill ed at slightly under the stipulated cost of £200,000. Whether China will maintain the stations the Urga one is in the hands of the Bolshevists and obtain benefit from them i tother question. She has nirendy defaulted on the loan.

In 1919 the Chinese Government gave a charter to the Chinese National Wire le Telegraph Company, with an initial capital of £200,000, of which half was to he found by the Government and kalt by the Marcoli Company, the latter conced. ing its patents and technical resources, and relinquishing in favour of the former company its established business in China. The object of the Chinese National Com pany was to manufacture material, and it is prohibited from operating wireless stations. The charter gives it the privilege | of exclusively supplying wireless and tele

phone material, provided the goods are not lower in quality or higher in price then those obtainable elerwhere.

by the Italian Corps of Occupation in Tientsin for communication with men-of- war in Taku Bay, and inauguraed in the presence of Yuan Shih. Kai, then Viceroy of Chili. I well remember how kern were your officers, and more to the Japanese, when I translated into Englisb the explanations given by the Italian naval officers who had been instrumenta) in establishing it. After that an Italian naval offerr, Grasso hy name, was lent by the Italian Government to the Chinese Government for the installations which the Chinese intended to make for them- selves, and I leave if there because about that time I left the country,

In reply to this, Capt. G. Duncan, R.N., saya Signor Cesare Poma is incor rect, in claiming that the first installation of wireless in China was in 1903, and the credit due to his country and compatriots. After the Taku Forts were taken in June, 1000, the British Admiralty sent out a wireless installation, which was erected on the North-West Fort at the entrance of the Peihe River, and was awd for the pur- poses of communication between the fort, the British naval vessels, and Chefoo. The Singla mast and for the aerial wire was erected in August or September, 1900, bac how long the wireless service lasted he could not say, as the forts were event- ually dismantled and partially demolish

THE FALLING YEN. GOVERNMENT TO RELEASE MORE

Finally, in February, 1921..the Federal ed. Telegraph Company of San Francisco signed an agreement to erect a high- power station at Shanghai, and sub- sidiary stations at four other points, of which, one is Peking. This arrangement evoked protest From Japan, on the ground that it was a violation of the monopoly accorded to the Mitsui Com- pany, and from Great Britain, because ignored the exclusive rights of the cable companies and the promise, to the Mar. eoni Company. Controversy became very. brick. The Chinsen Government had gone back on all its undertakings, and the three other Governments concerned argued independently,

AMERICAN ATTITUDE

The Americans declared that their agreement contained as monopolist privi leges, that they had never admitted any preferential rights claimed hy other nationalities, either as "regarda wireless or the cable companier, and that their hands were not tied by any arrangements which the Chinese might have made pre viously with other parties, After a great deal of discussion the whole subject was referred to the Conference about to be convened at Washington.

There are certain features of the Mitani and Federal contracts which are instructive of the motives behind them. The Mitsui station was to be erected, equipped, and handed over to China in exchange for bond, for £536,207, repay Fable in 30 anpuri instalments. It is stipulated that the station, shall be con

SPECTE

RESTRICTION ON IMPORTS.

On the afternoon of "January 16th the Financial Department published the fol lowing statement:--

The adverse trade conditions deve loping recently threaten to disturb the exchange market. With a view, to ame- liorating the situation. the Government will endeavour to'release as much of the specie it holds abroad as is, possible in the circumstances for the importation of commodities of absolute recnsity. It is hoped that this will eliminate the disturbing conditions from the market," A will be apparent from the state- ment, the Government is going to try, to smooth out the difficulty of importing necessary commodities, at the same time checking the purchase of articles not ab solutely needed. Japanese paper say that exchange operations will be placed under strict, vigilance so that the hist ance.given may not be abuard, Accord. ing to Mr. Nishino, Vice-Minister of Finance, the Government or the Bank of Japan will deal with the applications from exchange: bankers, who w. be re- quired, na before, to produce the list of commodities for which the fund is needed.

Japan Chronicle,

"DECOLITE"

FIRE-RESISTING FLOORING

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