File No. 893.77/1605
Minister Reinsch to
the Secretary of State
[Extract]
No. 1451
American Legation,
Peking,
April 14, 1917.
Sir: Referring to my telegram of April 3, 6
p.m., the Department’s reply of April 7, 5 p.m., and my further telegram
of April 13, 8 pm., I have the honor to enclose herewith a translation
of the letter addressed to me by my French colleague under date of the
30th ultimo, and a copy of my reply of the 14th instant, in regard to
the French claim of priority in the matter of railway and mining
enterprises in the Province of Kwangsi. I also enclose a translation of
the note of September 26, 1914, from the Wai Chiao Pu to the French
Legation, referred to in Mr. Conty’s letter, of which a copy has been
furnished me by the Ministry for Foreign Affairs. There is also added
for reference Article V of the Chinese-French Trade Regulation,
supplementary article, February 7, 1896. * * *
It appears that in the present conjuncture of political conditions the
French Government would be particularly disposed to evidence to both the
United States and China its desire to deal fairly with them and to
respect scrupulously both the letter and the spirit of its adherence to
the principle of equal commercial opportunity. The same would seem to be
in equal degree true of Great Britain and of Russia; and it is
furthermore the fact that the entry of the United States into
belligerent cooperation with the Entente nations has so far assured the
preponderance of power in their favor that they can be rid of the
apprehension of the defection of Japan, and can deal with Far Eastern
questions without bias. * * * I have therefore ventured the suggestion
that the present occasion is particularly opportune to seek, in
cooperation with those Powers, a formal renewal and precision of the
open door principle. Such a solution would be to the interest of all
commercial nations and it would do more than anything else to reassure
and stabilize the situation in China both at present and in the
future.
I have [etc.]
[Inclosure 1—Translation]
The French Minister to
Minister Reinsch
French Legation,
Peking,
March 30, 1917.
Mr. Minister and dear Colleague: At the
time of the signature of the contract concluded September 30, 1916,
between the Chinese Government of the one part and the American
International Corporation and the Siems-Carey Company of the other
part, your compatriots, evidencing a friendly delicacy towards my
country, were so good as to give assurance that the French
privileges concerning the provinces bordering upon Indo-China would
be respected. It is therefore my duty to put them on their guard
against any obstacle which might arise in that quarter.
Now it appears, from information contained in various newspapers and
reviews, that the contract of September, 1916, contemplates the
construction of a railway running from Hangchow to Chinchow, passing
through the province of Kwangsi.
[Page 186]
In contemplating this project, the Chinese Government appears to have
forgotten the communication which it addressed to me on September
26, 1914, in concluding a negotiation in regard to certain incidents
occurring upon the frontier of Kwangsi.
This communication is to the effect that if there is to be a railway
to be constructed in that province, and if it is then necessary to
have recourse to foreign capital, the Chinese Government will seek
in the first instance to borrow French capital.
I am today recalling this engagement to the Chinese Government, and
find myself obliged to notify it of my reserving all rights in
regard to this matter.
I feel it my duty to inform you of this situation in order to avert
any possible misunderstanding and to spare your compatriots any
eventual difficulty.
Please accept [etc.]
[Inclosure 2]
Minister Reinsch
to the French Minister
American Legation,
Peking,
April 14, 1917.
Mr. Minister and dear Colleague: I have
received your note of the 30th ultimo, and wish to thank you for
bringing to my attention the matter concerning the Siems and Carey
Railway Contract as relating to the Province of Kwangsi. In
acknowledging your cordial appreciation of the friendly attitude
taken towards the French interests by the American company, I
venture to add that it was with the entire approval of this Legation
that that company gave assurance of its desire to respect the
specific right of French interests and privileges as known and as
interpreted in the light of the French Government’s consistent
adherence to the policy of equality of commercial opportunity in
China. Neither the Legation nor (as I understand) the American
company in question was hitherto aware, however, that by the note of
September 26, 1914, to which you refer, the Chinese Government had
offered to French interests such a general right of priority in
railway construction, in the Province of Kwangsi, as might be
construed to preclude the equality of opportunity for American
interests in that regard: and the question thus raised, by the
document which you have now brought to my attention, importing an
element of exclusion or of restriction upon the opportunities of
American enterprise in that province, are such as I must refer to my
Government for consideration—the result of which I shall of course
be happy to discuss with you.
In the meanwhile I have to advise you that, as the Americans
concerned are under contractual obligations with the Chinese
Government in this matter, they are proceeding at the latter’s
request to survey this line—which is one of a number of railways
from which a selection for the purpose of actual construction is to
be made on the basis of commercial feasibility as established by the
surveys.
Please accept [etc.].
[Inclosure 3—Translation]
The Wai Chiao Pu to the
French Minister
Since there has been disorder on the border of Yunnan and Kwangsi,
which has led to misunderstandings, both sides have appointed
deputies to investigate and make arrangements for the pacification
of the locality. Several replies have been sent to your excellency,
in response to your requests for action to be taken, which we trust
have been satisfactory. Now our Government wishes to show in an
especial way its friendly intentions. In future if railway or mining
enterprises are to be undertaken in the Province of Kwangsi, in
which foreign capital is required, an offer will first be made to
French capitalists. At such a time the higher officials of Kwangsi
will ascertain the facts and carry on negotiations with the French
Minister. A report will then be made to the Government, which will
make a final decision.
With compliments [etc.]
[Page 187]
[Inclosure 4]
The Chinese-French Trade Regulations,
Supplementary Article, 22d Year of Kuanghsü, 6th moon, 28th
day (February 7, 1896)
Article V. It is agreed that if China in
future wishes to open mines in Yunnan, Kwangsi or Kwangtung,
negotiations shall first be entered into with French dealers in
mining equipments and with French mining engineers. Mining
operations shall be carried on according to Chinese mining
regulations. In respect to railways in Yunnan, whether those already
constructed or those to be added, there shall be mutual negotiation
and the railways shall be carried on as may be agreed between the
two nations, as to connections within the borders of China.
