In a digital radio transmission system for transmitting independent dual data by using cross polarization, an interference canceller detects cross polarization interference either directly or indirectly. An interference compensating signal is generated and applied to the main signal to cancel the interference element. In a case where no interference element is present, deterioration of cross polarization discrimination from an interference cancelling circuit is prevented by first determining whether an interference element actually exists and applying the interference compensating signal only when it does exist. The interference compensating signal can be attenuated based on the value of interference element so as to prevent undo deterioration of the cross polarization discrimination when the interference element is minimal.