The Archive · 1933

Mackay Radio Contract

Revision of Terms of Original Agreement: — Important Modificatioas

Nanking, Apr. 8.

As already reported, a revised radio traffic agreement and an new agreement for the purchase of wireless equipment were formally sign. ed yesterday by the Ministry of Communications "with the Mackay Radio Company and the China Elec-trio Company respectively.

In July last year, the Mini ry of Communleation' si tentative agreement with the Mackay interests for radio traffic with America and another agreement with the Ghina, Electric Company regarding the purchase of wireless equipment. [These agreements were signed during the "regime of General Chen /Ming-shu_as Minister of Communications. "Subsequently however, the cements were reviewed and' several of the terms were considered highly disadvantageous, The agreement with the China Electric Company, it may be noted, provided for the purchase by China jot one dio telephone set and four smaller ones, at. the price of Gold $310,000. In view of the cit-Jeumstances prevailing in the coun-fry, it was felt that there was urgent need in China for interna-ti iso found dificult, in nal radio telephone communica-trafic agreement and the new purchase agreement: as the original agree ided for direct traffic with

ines, the revised agreement pro-Hand the Philip-vides' for direct tref with America only. In. the event, however, of messages between China and America being interrupted en route, they may. be "sent via the Philippines, provided, however,' that the apportionment of revenue in such cases shall be the same as that provided for direct trafic. This revision has been made because the receiving {facilities at the International Radio Station (Chenja) are inadequate to cope with messages from three routes ad, moreover, there is no Foutes {Hawall and the Philippines), essing demand for the other two

2 Under the revised process from, the Eansinitsion and ages, wil be equally apportioned befieen the Mackay Interests nnd the Chinese Government. The original Sereement provided that the being Party. shall roce've twosthirds- and total proceeds: As it i likely that Feceiving party one-third of the tore messages would be received than sent bythe Chinese station, the." present "straitened state of this revision ha eon effected national finances, "to raise the order' to atu aimness to both amount required to pay'

base the pak The provisions in the original agreement calling for the Company ght to tribution by the Chinese Govern-nominate engineers aswell. as to ment of radiogram forms bearing Jadminister. the radio telephone specified route and other marks wat stations. Tt also contained a stipula ation to the effect that the purchase price under the agreement should 4. Provisions in the original be paid out of the revenue from the agreement concerning trafic with 'SGath America, were. cancelled, it alo trafic provided for under the ations' were considered to. be. Uislackey agreement, These. stipula eng, feared, that such. provisions Monopoly in China's international give the Mackay interests a Ivantageous to China and were Horthermore regarded as, terms radio trafic with South America.

ich should not be embodied 5. Under the new agreement, the contract, of sale which. the Chinese text, will be final in case of ment with the China Electric Com-to interpretation of the agreements contain to the effect that, actual date has not been fixed yet—the handing in and delivery service at Shanghai will be caryled out the: name of the Ministry of Communications, the latter" formally taking over, the companies' acceptance and delivery offices and the present staff attached thereto. At the same time, however, assurances have been obtained from, and arrangements made with, the Ministry of Communications providing for the effective ce-operation of the cable companies with the Chinese Telegraph Administration in all matters. relating to the aceaptance and delivery of, telegrams, thereby ensuring that branch of the telegraph service will continued exactly as hitherto, and that the present high standard of efficiency will be maintained in every respect.

"The signing of the new agreements means the adding of a dresh sheet to the history of the cable companies' working in China, and there is every hope that the agreements will "form a satisfactory. basis for the continued " friendly and harmonious collaboration be~ tween the Chinese Telegraph Adtration and the companies, to

Text read from the printed page and cleaned; old type leaves the occasional error.

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