Attached hereto is an agreed upon minute covering informal discussions
between Mr. Brown, Great Britain, M. Girardeau, France, Messrs. Inada
and Yoshino, Japan, and myself.
M. Girardeau, who by the way is an official of the leading French radio
Company, was keenly alert to the interests of his company. He urged the
desirability of an agreement between the private radio companies of the
United States (Radio Corporation), Great Britain, France, and Japan
looking toward joint action in the development of radio in China. He
clearly sought to make the French station at Saigon the central radio
station of Asia with China merely having secondary stations designed to
handle traffic to and from Saigon.
Mr. Brown, who is a broad-minded person and who wants to see developed
(preferably under government ownership) a comprehensive international
network serving all alike, constantly expressed the view that the United
States and Great Britain should not stand in each other’s way in China
and should urge their respective nationals to waive claims to existing
monopolies.
The Japanese appeared to have no definite proposals in mind and appeared
willing, providing a use could be found for the Mitsui (Japanese)
station erected near Peking, not to press claims to monopolies or
special privileges. They were especially interested in the possibility
of improving communication services between the United States and Japan
and stated they were going home to gather all the available data. They
also stated that the Japanese Ambassador was authorized to negotiate
with the American government generally regarding electrical
communications.
It was agreed that the attached minute should be brought to the attention
of the governments concerned with the suggestion that, so far as it
goes, it should serve as a basis of policy and of understanding between
the Powers.
It might be worth while to send copies of the minute to Tokyo and Peking,
as it brings out to some extent the attitude of the other countries.
[Enclosure 1]
Recommendations of the American, British,
French, and Japanese Communications Experts
We the undersigned, experts for Communications attached to the
American, British, French and Japanese Delegations to the Washington
Conference, have held several informal conversations on the subject
of Radio Communication in and with China, and desire to submit the
following observations to our respective governments:
(1) The British, French, and Japanese experts have exchanged views
for the purpose of bringing about, with the consent of China and of
their respective private interests, a cooperative scheme looking to
the provision of suitable radio stations in China for the
establishment of services between China and other countries.
Provision would be made in this scheme for the participation of the
nationals of other countries on fair terms. While the scheme would
look primarily to the provision of communication services between
China and the territories of the countries whose nationals
participate, nevertheless communication services would be provided
with other countries whose governments gave consent.
The proposed cooperative organization would have no monopoly or
exclusive privilege and would be subject to Chinese laws and to such
general international agreements relating to communications as China
may be a party to.
While it is recognized that the Chinese government may not for some
time to come be in position to finance or to develop high-powered
radio as a national undertaking, provision would nevertheless be
made for the possible purchase by the Chinese government, upon fair
and reasonable terms, of stations provided in China by the
cooperative undertaking.
It is proposed that the station now being erected near Peking should,
upon fair and reasonable terms and with the consent of China, be
included in the proposed cooperative scheme. The proposed heads of
arrangement are shown in the Annex.
(2) The American expert believes that probably radio communication
between China and the United States can best be developed by the
erection in China of radio stations primarily concerned in
trans-Pacific communications and that such stations preferably
should be owned and operated by the Chinese government or by Chinese
or American private enterprise and that the existing concession held
by the Federal Telegraph Company should serve as a basis for
providing Chinese–American service.
While such stations would be employed primarily for the provision of
services between China and American territory and North America
generally, nevertheless communication services could also
[Page 841]
be provided with other
countries whose governments gave consent. Other foreign owned
stations in China might also communicate with American territory,
but the American government might well prohibit such exchange of
traffic in cases where the foreign enterprise operating in China or
the country to which it owes allegiance does not reciprocally permit
American owned stations to communicate with its stations.
The existing Federal concession contains no monopoly or exclusive
privileges and the stations therein contemplated would be subject to
Chinese laws and to such general international agreements relating
to electrical communications as China may be a party to.
While it is recognized that the Chinese government may not for some
time to come be in position to finance or to develop high-powered
radio as a national undertaking, provision should be made in
concessions for Chinese-American communication (as in all other
concessions) for the possible purchase by the Chinese government,
upon fair and reasonable terms, of the radio stations concerned.
(3) The enterprises contemplated by (1) and (2) should be at liberty
with the approval of the governments concerned to arrange between
themselves for the interchange of traffic and for such other
understandings as may benefit their respective interests.
(4) The provision of suitable radio stations in China for
communicating with ships at sea is particularly desirable. If
foreign owned stations in China are authorized to handle ship and
shore traffic, all the interests concerned should cooperate with the
Chinese Ministry of Communications with a view to coming to a common
understanding regarding such operations.
(5) It appears desirable that the China National Wireless Company be
broadened so as to make possible participation of other interests
that can contribute patent rights, technical skill, or financial
resources with a view to the development in China of factories
capable of manufacturing a wide variety of radio apparatus. In
conformity with the principle of the Open Door, such a company
should not have a monopoly or preferential privileges although it is
recognized that the control of patents and the participation in the
ownership of the company by the Chinese government may go far toward
creating a special situation.
We recommend that the governments whose nationals are interested in
the China Electric Company and the Chinese National Wireless
Telegraph Company should urge the two companies voluntarily to come
to an understanding that will prevent conflicts arising out of their
respective manufacturing concessions.
(6) We suggest that the four powers recommend to China that an
arrangement be entered into with the cable companies looking toward
the continued working, for a limited period after the expiration
[Page 842]
of their existing
contracts in 1930, of the Chinese coast cables and landlines used in
conjunction with the companies system, substantially on the basis of
the existing working agreements, provided no such arrangement
involves any monopoly or preferential privilege and leaves a fair
field for electrical communications in China and between China and
other countries: the companies to notify the Chinese government that
they in turn will immediately withdraw any claim to a monopoly in
wireless communication in China or between China and other
countries, and thus leave free scope for wireless development, but
without preference for wireless as compared with cables and
landlines, except that the rates chargeable to the public for
communication by wireless may be 25 per cent (or in the case of
press traffic more than 25 per cent) lower than the corresponding
rates by cable, and that the rate for communication by wireless with
America may be as low as the wireless rate to Western Europe—these
limits to be reconsidered after 1930.
Washington, February 4,
1922.
