893.74/193
The Minister in China (Schurman) to the Secretary of State
[Received November 2.]
Sir: Referring to the Legation’s despatch No. 1575, of September 7, 1921,68 I have the honor to report that the Supplementary Articles68 concerned with the issuance of bonds in connection with the [Page 451] execution of the wireless contract signed between the Chinese Government and the Federal Telegraph Company of California on January 8, 1921, were duly signed by the Minister of Communications and the Representative of the Company, Mr. Barnes Moss, on September 19, 1921.
Both the Minister of Communications and the Premier have expressed to the Legation their regret at the long delay that took place between the signing of the original contract and the signing of the Supplementary Articles, and explained that this delay was not occasioned in any sense by a lack of desire on the part of the Chinese Government to execute the contract, but was due to a variety of complications which required consideration before further steps were taken. As a matter of fact, party politics and personal antipathies, the Legation is convinced, operated to a large extent to prevent the speedy execution of the contract of January 8, 1921, and I am further convinced that had it not been for the extremely firm stand taken by the American Government and its allusion to the whole Open Door Policy in this connection, as well as for the efforts of the Legation during the nine months of negotiations; the contract might very well have been abandoned by the Chinese Government. The far-reaching effect that such an action would have had on the international situation in the Orient is quite apparent to the Department and need not be discussed here. It is likewise unnecessary to recount in any greater detail the various vicissitudes through which the negotiations passed prior to their successful termination on September 19, 1921. It may, however, be remarked that the Chinese official world and the general public appear to welcome the Federal wireless contract with great heartiness, and the protests so vigorously maintained by the British, Japanese, and Danish Governments are not now greatly in evidence.
There is nevertheless another aspect of the matter that should in justice be alluded to. The protests of the Governments opposed to the American wireless contract, especially those of Great Britain and Japan, evidently inspired in the minds of the Cabinet members feelings of the most serious apprehension. While they undoubtedly desired the goodwill of the United States at the Pacific Conference, one of them at least, I am confidentially informed, maintained that American assistance would be valueless, inasmuch as the United States had been powerless to silence the British and Japanese opposition. It was felt that, while the United States might be in a position to ignore the hostile attitude of these nations, China could not, and the Legation was more than once impressed with the idea that perhaps the Cabinet was waiting for some confidential assurance [Page 452] of support from our Government before deciding definitely in favor of the American interests. In more than one direction the present personnel of the Chinese Government is anxious for a close understanding with the United States and regards the institution and operation of the Federal Radio Stations as an important agency of cooperation between the two Governments and peoples. This enterprise therefore may well be regarded by the American Government also as a powerful agency that should be fully utilized for increasing the intimacy both of the Governments and the peoples of the two nations. From all aspects, political, military, and commercial, the conclusion of this contract is a cause for the greatest satisfaction.
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I have [etc.]