The Secretary of State to Minister Rockhill.

No. 157.]

Sir: I inclose herewith a copy of a dispatch from the consul-general at Shanghai, inclosing a copy of a letter to be addressed by the senior consul of the consular body at Shanghai to the dean of the diplomatic corps at Peking, protesting against the restrictions threatened by the Chinese on the natural growth of the foreign settlement at Shanghai toward the north and east. I also inclose a copy of the department’s answer, approving the proposed letter.

You will support the request of the consular body unless you see some serious objection.

I am, etc.,

Elihu Root.
[Inclosure 1.]

Consul-General Rodgers to the Assistant Secretary of State.

Sir: I have the honor to forward herewith a copy of a letter I have drafted for transmission by the senior consul of the consular body of Shanghai to the dean of the diplomatic corps at Peking. This subject of the proposed limitation of the foreign settlement in Shanghai and its environs is one of the most important questions between the foreigners and Chinese, and unless there is some amicable determination in the immediate future, it will furnish the incentive for trouble which will be far-reaching. In addition to the information contained in the inclosure, I may add that each day proves the absolute necessity of an extension of the settlement toward the east—the region which will be indicated for freight and cargo traffic when the Whangpoo improvement work is completed. The excessive values of land along the present water front and in the residential district, known as the western section, enforce the conclusion that the natural growth of Shanghai, which can not fail to be great, must be in the direction in which the Chinese authorities are now preparing to act. From Shanghai to Woosung is only 8 miles or thereabouts by the railroad, and eventually all of the territory between the railroad and the river will be settled by the population needed to transact the coming business of this important port.

It is to be hoped therefore that some mutually satisfactory arrangement can be devised at Peking which will not only avoid the dispute and trouble impending but will also settle for all time such questions affecting the future of Shanghai. A letter similar to this has been forwarded to the American minister at Peking.

I have the honor, etc.,

Jas. L. Rodgers.
[Subinclosure.]

Letter from senior consul at Shanghai to dean of diplomatic corps, Peking.

Sir: I have the honor, on behalf of the consular body, to invite the attention of yourself and your colleagues of the diplomatic corps to a question which seems to be of the greatest moment to all foreign interests in Shanghai and its environs. The matter stated as briefly as possible is as follows:

To the north of Hongkew (the so-called American concession of old) is the district of Paoshan, into which by consent of Liu Kung Ye, late viceroy of the Liang Kiang Provinces, and Yuan, former taotai of Shanghai, as was evidenced [Page 298] by proclamation, foreigners were allowed to extend roads, to build foreign dwellings on lands rented in perpetuity, and effect other improvements. These residents along North Honan and North Szechuen roads particularly, being beyond the settlement limit of Range road, volunteered—Chinese as well as foreigners—to contribute money to the international municipal council in lieu of taxes, and in consideration of this policy obtained water, electric light, and gas service, and police and fire protection. By request the houses have been numbered, and the district has been treated as though a part of the settlement, without objection on the part of the Chinese. But of late the Chinese authorities have seen fit to protest against this natural extension of the city’s growth and have given notice that there shall be no further encroachment under any species of municipal control. Furthermore it is announced that the Pao-shan district lying north of the line of Range road and west of Honan and Szechuen roads—being the section immediately adjacent to the Shanghai-Woosung-Nanking Railway line and station—is to be created a Chinese municipality and subject only to such jurisdiction as may be imposed by those appointed to govern it. While such procedure, which is entirely similar to that under which the Chinese Bund section adjoining the French concession on the south was created, may be entirely within the right of the Chinese, we feel it our duty to point out the ultimate effect upon the coming great development of Shanghai. The residential district of which the North Szechuen road is the main artery, under such limitations as will be prescribed by the Chinese hereafter can extend but little farther than the rifle range, and by a simple amplification of the Chinese programme their prospective municipality can block all egress to the north and prevent extension eastward along the north line of the present settlement limits. This would mean that the growth of the city between the water front of the Whangpoo and the Woosung Railway line would be curtailed, and as a final result there would be absolute confinement of the settlement to the present area.

Such a future for the Shanghai of the present is not desired by the responsible Chinese classes, who now appreciate the benefit and utility of modern innovations and who are not only content but also eager to reside in sections under foreign control. The increase in population, as is evidenced by the recent census and by daily current observation, warrants proper extension of the settlement, and any restriction will work a hardship and do irreparable injury which will react upon the interests of all people. The settlement area is already crowded, the values of land have increased enormously, and apparently the only outlet for the city’s natural and logical growth is toward the north and east, the sections which apparently the Chinese authorities are now determined to close against any species of foreign supervision.

We earnestly urge the consideration of this matter by the diplomatic body and hope that some arrangement or understanding can be reached by which Shanghai can be allowed to attain its manifest destiny—that of being a still greater treaty port, in which Chinese and foreigners can reside under a system of government mutually satisfactory to those whose best interests are involved.

I have the honor, etc.,

———— ———,
Consul-General for Belgium and Senior Consul.
[Inclosure 2.]

The Assistant Secretary of State to Consul-General Rodgers.

Sir: I have to acknowledge the receipt of your dispatch, No. 160, of the 25th of May last, inclosing copy of a letter to be addressed by the senior consul of the consular body at Shanghai to the dean of the diplomatic corps at Peking, protesting against the restrictions threatened by the Chinese on the natural growth of the foreign settlement at Shanghai toward the north and east.

This proposed letter has the approval of the department, and the American minister at Peking will be instructed to support the request of the consular body unless he sees some serious objection.

I am, etc.,

Robert Bacon, Assistant Secretary.