graph Company was in terms effective only when all South American Governments concerned acquiesced in waivers by Western Company and All Americas Company. The granting of a license to the Western Union to land at Miami a cable to connect at Barbados with a cable of the Western Telegraph Company awaits an expression from the Argentine Government which can be regarded as acquiescence rendering effective the waiver of the Western Company. Last sentence your telegram confirms views expressed in Department's No. 192, July 1, that no relation exists between efforts American companies to obtain privileges in Azores and application of Western Union to land at Miami. Department does not consider that possibility of American competition with British companies is acceptable reason for action of British Government in opposing application of American companies for privileges in Azores and can only regard attitude of British Government in matter as determination on its part to assist British companies to maintain control of cable facilities in Azores to exclusion of legitimate competition of American companies. It is desired that you supplement the communications which you have heretofore been directed to address to the Foreign Office on the subject by communicating foregoing to Lord Balfour 80 personally, observing plainly that this Government cannot fail to be influenced by the feeling that the British Government is unwarranted in opposing legitimate efforts of American cable companies to obtain in Azores cable facilities which are not exclusive and which would in no way interfere with the exercise by British cable companies of privileges similar to those sought by American companies. Please report whether you have communicated to Foreign Office the full contents of Department's 184 of June 23 and 192 of July 1. HUGHES 841.73/32: Telegram The Ambassador in Great Britain (Harvey) to the Secretary of 301. State [Extract] LONDON, July 18, 1922—6 p.m. With reference to your telegram 210, July 18 [17], 4 p.m. just received, I beg to report that your telegrams 184, June 23, 6 p.m. and 192, July 1, 1 p.m. were communicated to Foreign Office with 80 * British Acting Secretary of State for Foreign Affairs. the exception of the closing paragraph of the former, communication of which was left to my discretion. It was thought wisest to hold this in reserve in view of the apparent misunderstanding that existed as to the real situation, the Foreign Office insisting that the conditions laid down in your 192 as prerequisite to the granting of landing permit at Miami had been long ago complied with. Your 210 seems to clarify matters and will be acted upon without delay. HARVEY 811.7353b/105: Telegram The Ambassador in Great Britain (Harvey) to the Secretary of State LONDON, August 3, 1922-1 p.m. [Received August 3-12:25 p.m.] 333. My 301, July 18, 6 p.m. Mr. Frederick Kerr who represents Western Union Telegraph Co. at Lisbon informs me he knows that Foreign Office instructed British Minister at Lisbon to inform Portuguese Government it would be greatly to its disadvantage if it granted Azores permits. He believes Portuguese Government would welcome strong pressure from American Government to justify it in disregarding British pressure. HARVEY 811.7353b W 52/22 : Telegram The Minister in Portugal (Dearing) to the Secretary of State LISBON, August 5, 1922-11 a.m. 66. Morning papers state Western Union concession approved late yesterday with some amendments.81 Will verify and report more fully. Please inform Carlton.82 London informed. DEARING 811.7353b W 52/23: Telegram The Minister in Portugal (Dearing) to the Secretary of State [Extract] LISBON, August 5, 1922-2 p.m. 67. My telegram number 66 August 5, 11 a.m. Learn . . . reservation provides all South American traffic shall pass through Saint Vincent in the Cape Verde Islands . . . ... 81 By Chamber of Deputies. 83 Newcomb Carlton, President of the Western Union Telegraph Co. I shall make no protest until Department has consulted Western Union and instructed me. Endeavoring to secure printed text but may have to wait a few days. Please instruct soonest possible. London informed. DEARING 811.7353b W 52/25: Telegram The Minister in Portugal (Dearing) to the Secretary of State 70. For your information. London today: LISBON, August 7, 1922-7 p.m. "Please suggest to Kerr advisability of having someone here to watch Western Union interests and work in conjunction with Legation. Foreign Office informs me concession yet to be passed on by the Senate.' DEARING 811.7353b W 52/23: Telegram The Secretary of State to the Ambassador in Great Britain (Harvey) WASHINGTON, August 8, 1922—4 p.m. 241. Your 333, August 3, 1 p.m. Department has received Lisbon's Nos. 66 and 67, August 5, repeated to you. Department has informed Western Union of report and has requested Company's comment. Department considers unjustified action of British Government in pressing and of Portugal Government in imposing such restriction on American company. Will keep you advised. HUGHES 811.7353b W 52/23: Telegram The Secretary of State to the Minister in Portugal (Dearing) WASHINGTON, August 8, 1922—4 p.m. 56. Your 67, August 5, 2 p.m. Please say to Portuguese Foreign Office that Government of United States most earnestly urges that Portuguese Government should not discriminate against American companies or subject them to injurious restrictions in the operation of cables which the amendment said to have been made to the Western Union concession would entail. Inquire whether the report is true. For your information. Western Union states it has received no report of amendment and will not accept license containing such a condition. HUGHES 811.7353b W 52/26: Telegram The Ambassador in Great Britain (Harvey) to the Secretary of State LONDON, August 9, 1922-6 p.m. [Received August 9-4:25 p.m.] 348. Your 241 August 8, 4 p.m. Mr. Frederick Kerr representative in Portugal of Western Union who is now here states that a proviso in landing license, such as has been reported by the Legation at Lisbon, that South American traffic should go via Saint Vincent would render license useless to his company and has instructed his agent at Lisbon not to sign any contract containing such a clause as it would put eastern company in a position of getting all traffic from Europe to South America while being under no obligation to give Western Union any traffic in reverse direction. HARVEY 811.7353b W 52/27: Telegram The Minister in Portugal (Dearing) to the Secretary of State LISBON, August 10, 1922-1 p.m. [Received 6:42 p.m.] 72. Refer to my telegram number 67 August 5, 2 p.m. Minister for Foreign Affairs sends me text of Western Union bill as approved by Chamber of Deputies containing amendment inserted as extra paragraph article 1, reading as follows: "Telegrams transmitted over any one of the sections of the cable or cables of the concessionaire and destined to South America may only proceed to destination by the way of Cape Verde Islands." Please give me Western Union reason [reaction?] and any instructions deemed necessary soonest possible. Barest chance exists to secure elimination amendment if action taken before Senate acts. London informed. General situation still much disturbed. DEARING 811.7353b W 52/25: Telegram The Secretary of State to the Minister in Portugal (Dearing) WASHINGTON, August 11, 1922—5 p. m. 57. Your No. 70 August 7, 7 p.m. and 72 August 10, 1 p.m. Western Union here advises Department London office reports Kerr has telegraphed his representative to return to Lisbon and confer with you and has directed him to withhold signature from any document containing proviso, to inform Portuguese Government that proviso renders the license useless to the company and to endeavor to have the amendment deleted before Parliament rises. Department understands company's representative has been instructed to endeavor to have amendment deleted before action taken by Senate. Render all appropriate assistance to have objectionable features removed and to have concession granted without injurious restrictions. Continue efforts on behalf Commercial Company, informing Portuguese authorities that this Government desires that there be no discrimination against American cable companies in favor of cable companies of other nationality and likewise that there be no discrimination as between American companies. Please inquire of Foreign Office reason why Portugal imposes these restrictive terms on American company and insist on answer. For use in course of your further efforts Department observes that it seems obvious that in inserting in concession condition quoted your 72 August 10th Portugal is yielding to British influence exerted in opposition to American interests because it secures to British cables all traffic of European origin transiting Azores to South America and renders cables extending from Azores to Continent mere feeders of British cables so far as South American business is concerned giving British interests benefits of cables going to Continent without any investment in them. United States Government hopes and feels confident that upon realization real significance and effect proposed condition, Portuguese Government will promptly delete it and will discontinue attempt to impose on American companies such restrictive discriminatory and injurious terms in favor of British interests. Operation of American cables on such terms or refusal of American companies to accept licenses containing such conditions would inevitably result in diversion to North Atlantic cables, with consequent loss of revenue to Portugal, of traffic which would otherwise transit Azores. HUGHES |