''Radio Corporation of America v China'' was a 1935

arbitral proceeding Arbitration is a form of alternative dispute resolution (ADR) that resolves disputes outside the judiciary courts. The dispute will be decided by one or more persons (the 'arbitrators', 'arbiters' or 'arbitral tribunal'), which renders the ' ...

to determine whether a

concession Concession may refer to: General * Concession (contract) (sometimes called a concession agreement), a contractual right to carry on a certain kind of business or activity in an area, such as to explore or develop its natural resources or to opera ...

granted by the government of

China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...

(specifically the Chinese National Council of Reconstruction) for operation of

radio Radio is the technology of signaling and communicating using radio waves. Radio waves are electromagnetic waves of frequency between 30 hertz (Hz) and 300 gigahertz (GHz). They are generated by an electronic device called a transmit ...

communications between the United States and China was exclusive and could be considered to prohibit a similar concession to another company.

Background

The

Radio Corporation of America The RCA Corporation was a major American electronics company, which was founded as the Radio Corporation of America in 1919. It was initially a patent trust owned by General Electric (GE), Westinghouse, AT&T Corporation and United Fruit Comp ...

(RCA) was founded in 1919. At the time all radio or telegraphic traffic between China and the US, including official communications, was run through either German radio or British cables. Therefore, US Navy wanted a reluctant RCA to seek a concession in China (even though RCA's other Asian concessions were operating at a loss). RCA agreed and the

transmitter In electronics and telecommunications, a radio transmitter or just transmitter is an electronic device which produces radio waves with an antenna (radio), antenna. The transmitter itself generates a radio frequency alternating current, which i ...

was completed in 1928. When the Mackay Radio & Telegraph Company, also an American interest, signed a similar agreement with China in 1932, RCA claimed it was a

breach of contract Breach of contract is a legal cause of action and a type of civil wrong, in which a binding agreement or bargained-for exchange is not honored by one or more of the parties to the contract by non-performance or interference with the other party ...

Decision

The tribunal said the initial concession could not be construed as limiting the government's powers:

The Chinese Government can certainly sign away a part of its liberty of action, and this also in the field of international radio-telegraphic communications, and of its cooperation therein. It can do so as well in an implicit manner, if a reasonable construction of its undertakings leads up to that conclusion. It will, as any other party, be bound by law and by any obligations, legally accepted. But as a sovereign government, on principle free in its restriction of its freedom of action, unless the acceptance can be ascertained distinctly and beyond a reasonable doubt.

References

{{reflist Permanent Court of Arbitration cases RCA Concessions in China Radio communications