File No. 893.77/1608
The Secretary of State to the French Ambassador
Washington, August 24, 1917.
Excellency: I have the honor to acknowledge the receipt of your note of May 27, 1917, communicating to me the reply of the Minister of Foreign Affairs of the French Republic to my letter of May 1 last relating to a contract between the Chinese Government and the American International Corporation for the construction of a railway across the Province of Kwangsi.
I note that the Minister of Foreign Affairs states that the pledge given to France by the Chinese Government under date of September 26, 1914, really never was a secret note; that it was but the confirmation of the provisions of Article V of the Convention of June 20, 1895, and of the terms of the letter addressed on March 15, 1897, by the Tsungli Yamen to Mr. Gérard, Minister of France, from which the following quotation was made:
Dans l’avenir, s’il y a des chemins de fer à construire ou des mines à exploiter au Kouangsi, et s’il faut alors recourir à des capitaux étrangers, nous sommes tout disposés à emprunter en premier lieu des capitaux français.
Les hautes autorités du Kouangsi devraient, le moment venu, apprécier les circonstances et négocier directement avec la compagnie française. Elles présenteront un rapport à Pékin et attendront que le Gouvernement y donne suite.35
The Minister of Foreign Affairs adds:
Le Gouvernement de la République estime que l’arrangement précité ne fait aucunement obstacle à la politique de la “porte ouverte en Chine”, sur laquelle il se plait à reconnaître qu’il est cordialement d’accord avec le Gouvernement des Etat-Unis et à laquelle il ne peut que confirmer son adhésion antérieure.36
The American Government is gratified to receive the reassuring statement of the French Government that it concurs with the Government of the United States in the “open door” policy in China and repeats its previous adhesion to that policy.
An examination of the Convention of June 20, 1895, to which the Minister of Foreign Affairs refers, fails to discover in Article V any agreement relating to railways in Kwangsi. The text of Article V, in the possession of the American Government relates only to mines in Kwangsi and reads as follows:
Il est entendu que la Chine, pour l’ exploitation de ses mines dans les provinces du Yun-nan, du Kouangsi et du Kouang-tong, pourra s’adresser d’abord à des industriels et ingénieurs français, l’exploitation demeurant, d’ailleurs, soumise aux règles édictées par le Gouvernement impérial en ce qui concerne I’industrie nationale.37
With respect to the letter of March 15, 1897, from which the Government of France quotes the pledge given by China, the copy of the Yellow Book to which reference was made (China 1894–1898) contains, it is true, on page 33 a note numbered 43, but this note relates to the non-alienation of the Island of Hainan and makes no reference to Kwangsi. No doubt a mistake has been made in the citation. Thus far I have been unable to find in the files of the Department of State any copy of the note from which the Minister of Foreign Affairs makes quotation.
The existence of such an agreement, however, does not in the view of the American Government justify the objection made by the French Government to the contract between China and the American International Corporation.
I regret that I cannot share the opinion of the Government of the French Republic that the agreement does not jar with the “open door” policy, to which the Government of France repeatedly declared its adherence some years after the pledge of 1897 was given.
The American Government’s understanding of the “open door” policy in its relation to the claims of any nation to exclusive right to build railways, develop mines, or conduct other industrial enterprises in any region of China is clearly set forth in the memorandum sent by the American Government on February 1, 1902,38 to all the Powers interested in China. In that memorandum the following language was used:
An agreement by which China cedes to any corporation or company the exclusive right and privilege of opening mines, establishing railroads, or in any other way industrially developing Manchuria, can but be viewed with the gravest concern by the Government of the United States. It constitutes a monopoly, which is a distinct breach of the stipulations of treaties concluded between China and foreign powers, and thereby seriously affects the rights of American citizens; it restricts their rightful trade and exposes it to being discriminated against, interfered with, or otherwise jeopardized, and strongly tends toward permanently impairing the sovereign rights of China in this part of the Empire, and seriously interferes with her ability to meet her international obligations. Furthermore, such concession on the part of China will undoubtedly be followed by demands from other Powers for similar and equal exclusive advantages in other parts of the Chinese Empire, and the inevitable result must be the complete wreck of the policy of absolute equality of treatment of all nations in regard to trade, navigation and commerce within the confines of the Empire.
On the other hand, the attainment by one Power of such exclusive privileges for a commercial organization of its nationality conflicts with the assurances repeatedly conveyed to this Government by the Imperial Russian Ministry of Foreign Affairs of the Imperial Government’s intention to follow the policy of the “open door” in China, as advocated by the Government of the United States and accepted by all the Treaty Powers having commercial interests in that Empire.
The American Government still holds this view and therefore is disposed to believe that adhesion by France to the policy of the “open door” debars that Government from any claim to exclusive privilege in Kwangsi for the construction of railways. For this reason the American Government is unable to acknowledge the force of the objection made by France to the contract for the construction by the American International Corporation of a railway across Kwangsi.
[Page 194]It is a matter of regret that there should be any difference of opinion between the Governments of the two allied Republics as to the meaning of the “open door” pledges, but it is the sincere belief of the American Government that concessions by China to various Powers of exclusive advantages in the respective regions claimed by them as spheres of influence is detrimental to the best interests of all concerned and that the surest method of preserving the territorial integrity and administrative entity of China is by the insistence of all Powers upon equality of opportunity for commerce and industry in all parts of China without exception.
In requesting your excellency to communicate to the Minister of Foreign Affairs this statement of the views of the American Government I have the honor to express the hope that the Governments of the two Republics may come into complete accord in regard to the question at issue.
Accept [etc.]
- See translation in note from French Ambassador, May 27, 1917, fourth and fifth paragraphs.↩
- Id. last paragraph.↩
- Translation: It is understood that China may, for the exploitation of her mines in the Provinces of Yunnan, Kwangsi and Kwangtung, apply first to French manufacturers and engineers, the exploitation remaining, however, subject to the regulations issued by the Imperial Government concerning national industry.↩
- For. Rel. 1902, p. 275 ↩