Early in 1924, the Chief of Naval Operations (CNO), Admiral Edward W. Eberle, encouraged the Commander in Chief, Asiatic Fleet (CINCAF), Admiral Thomas Washington, to expand radio intelligence facilities in his area. As a result of this encouragement, in 1924, the first shore-based intercept station was established in the American consulate in Shanghai. Its primary target was the diplomatic radio network serving the numerous Japanese consulates throughout China. Shanghai also copied both Naval and commercial traffic (Japanese and British).

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