File No. 893.77/1625
The Secretary of State to the British Ambassador
The memorandum of the British Embassy, under date of September 8, 1917, in regard to the “open door” in China and concessions to different Governments in certain districts of China, is now acknowledged.
It is noted by the State Department, with much satisfaction, that His Majesty’s Government feels that there is much force in the arguments put forth in the Department’s memorandum of August 24, 1917.
With considerable interest is read the statement in the memorandum of the British Embassy that
in the view of His Majesty’s Government it is a cause for regret that a régime whereunder specific areas are earmarked for the enterprise of specific countries has gradually taken the place of a régime of free railway construction.
The American Government would fully share that regret, did it feel compelled to recognize that such a change had actually taken place. This the Department of State does not admit.
The fact that formal recognition was not given by His Majesty’s Government of the special position of Japan in Manchuria, of Germany in Shantung, of the French claims in Hainan and the provinces bordering on Tongking, and of the Japanese declaration concerning Fukien, places His Majesty’s Government, as regards China and as regards the “open door” as applied to China, in much the same position as the Government of the United States.
A China free of all claims by other Governments to special geographical areas for investment purposes would lend itself to the legitimate and unselfish financial enterprises of a friendly world. The benefits accruing to China would be manifold. The competition between nations and the intermingling of the general interests of different nationalities would prevent the acquirement by any one Government of such exclusive and proprietary privileges in any one region as to be tantamount to political control of that region. The free opportunity of investment for the citizens or subjects of any nation in all parts of China would invite to invest in any part of China the citizens and subjects of all nations who, it is now claimed, are shut out from very large areas there because those areas are preserved for the exclusive activities of citizens of the Government setting up a claim to exclusive privileges. The more uniform development of China would naturally result because ready capital would not be precluded from utilization in a now reserved district where the citizens of the Government claiming the reservation are at present not able or do not feel disposed to avail themselves of the privileges claimed for them.
The advantages to the nations now claiming spheres of influence would also be many. Among them, the whole of a great and undeveloped country would be thrown open to legitimate commercial activity of their citizens, whereas under a policy of exclusive privileges those activities would be restricted to a defined area. There could be friendly cooperation between the citizens of any Powers for their mutual good, and to the lasting benefit of China—a condition [Page 198] which is now hardly possible except on such polite invitation as is suggested in the memorandum of the British Embassy now under acknowledgment.
The Government of the United States appreciates the friendly spirit His Majesty’s Government manifests in indicating the possibility of joint cooperation in the construction to which the memorandum relates but the Government of the United States wants His Majesty’s Government to feel that the United States Government is inspired by no selfish desires in this matter. The United States Government feels that in this day of international dealing, when international economic exchange and coordination have assumed an unprecedented importance, the nations friendly to China owe to themselves, to each other, and to China the duty to assume that attitude among themselves and towards China which will better enable her to meet the economic demands which will increasingly be made upon her. Such an attitude, in the opinion of the United States Government, requires a strict adherence to the policy of the “open door.”
Since the opinion of His Majesty’s Government, expressed in the recent note and referred to in the first few paragraphs herein, so nearly accords with the view of the Government of the United States as regards the “open door,” and since His Majesty’s Government has not given formal recognition to the claims of the Powers to spheres of influence the Department of State feels that His Majesty’s Government might be glad to join with the United States Government in an effort to secure a more faithful observance of the “open door” policy by the Powers pledged thereto. If His Majesty’s Government will continue to support the policy or agree to do so on condition that other Governments renew their pledges, the Government of the United States will be very glad to have the cooperation of His Majesty’s Government to so worthy an end.
Existing contracts and vested commercial interests ought not to be disturbed, but it is necessary that the Powers cease to claim exclusive privileges in the various geographical areas with which they have respectively concerned themselves.
Washington , September 20, 1917.