Mr. Conger to Mr. Hay.

No. 228.]

Sir: In compliance with Department’s instructions No. 168 of April 22 last, in relation to settlement extension at Shanghai, I have the honor to report that when the French minister ascertained definitely that the proposed extension of the so-called foreign or international settlement in no way interfered with the plan agreed upon for the extension of both settlements in 1896, or in any way trespassed upon ground which might eventually be required for extension of the French settlement, he ceased his opposition, and the limits of the foreign settlement were agreed upon and the extension granted, as you will observe on the accompanying map,1 bounded by the red line. It is also agreed in the concession for the extension that the foreigners may own property and the municipality exercise authority over roads, police, sanitation, and lighting in the Paoshan district, extending as far as and including Wosung.

The French now ask for a small extension in the rear of their settlement, which on the map is included within the dotted black lines.

This is substantially the extension agreed upon by the diplomatic corps in 1896, and includes no American-owned property whatever. I can therefore see no good ground for objecting, and have already approved Consul-General Goodnow’s agreement to the same. At the time of my protest against the French extension it was proposed to include therein the American-owned hospital, school, and mission property, so designated on the map, and as the French claim exclusive jurisdiction within their settlement, the protest was wholly justifiable.

I believe the exclusive jurisdiction claimed in the French settlement has never been conceded by either the representatives of Great Britain or the United States. But the small extension of territory will change the situation as to this question neither for better or for worse, and it seems to me that it may properly be left for adjustment, if necessary, apart from the question of territorial extension. The British are still opposing the French extension, but upon what specific grounds I have not been able as yet to ascertain.

I have, etc.

E. H. Conger.
  1. Not printed.