793.94/1207

The Japanese Ambassador ( Shidehara ) to the Secretary of State

Dear Mr. Secretary: The Japanese Government have just telegraphed to me the text of their communication, under date of October 19 [15?], in reply to the Memorandum of the Foreign Office at Peking of October 5,57 on the Shantung question. Knowing the friendly interest which you have taken in the matter, I now beg to enclose herewith a copy of the new Japanese communication.

Believe me [etc.]

K. Shidehara
[Page 625]
[Enclosure]

Note of the Japanese Government to China, October 1958

The Japanese Government have submitted to their most careful consideration the memorandum of the Chinese Government dated October 5th relative to the Shantung question. The Japanese Government, animated as they have long been by a keen desire for a speedy settlement of this question, have hitherto spared no efforts to achieve its realization. In fact, directly the treaty of peace with Germany came into force in January last year, the Japanese Government invited the Chinese Government to enter into negotiations on this subject. No response, however, was returned from China for several months. When it eventually came it simply expressed unreadiness to proceed with direct negotiations with Japan on the ground of China’s nonadherence to the treaty of peace with Germany as well as opposition on the part of the general public to such steps. Whereupon the Japanese Government, while inviting the Chinese Government to reconsider the matter for reasons then advanced, made known their willingness to open negotiations with China at any moment considered opportune by her. More than twelve months have elapsed since then. Throughout that time the Japanese Government have been patiently waiting for the advent of a good opportunity for taking up this question, always hoping that the time may arrive when calm and fair counsels may prevail among the Government and the people of China.

In the meantime the attitude of the authorities concerned in China has undergone a considerable change. On more than one occasion they made it known to the Japanese Government that they were desirous of opening pourparlers with Japan on this subject. In particular on the eve of Mr. Obata’s departure for Japan in May last the Chinese Foreign Minister expressed to him his ardent desire to see a concrete project presented by Japan couched in just and reasonable terms, such as would simultaneously be deemed fair by all parties. Subsequently the authorities concerned in China confidentially presented to the Japanese Government a certain project in regard to this question and later they expressed, though unofficially, their readiness to open negotiations with Japan.

The Japanese Government, prompted by the desire to reach a satisfactory and speedy settlement of this question and taking into full account the Chinese project above referred to, made overtures [Page 626] to the Chinese Government, September 7th last,59 embodying most generous and fair terms and invited the deliberate consideration of that government.

Contrary, however, to the expectation of the Japanese Government, the Chinese Government in their memorandum under consideration expressed their unwillingness to proceed for the time being with the negotiation in question on the ground that the terms of settlement as proposed by the Japanese Government fell short of convincing them of the sincerity of Japan’s desire to settle this question. Further, they used at the beginning of their memorandum an expression characterizing most of the Japanese declarations hitherto made as hollow and devoid of meaning. The Japanese Government keenly regret for the sake of China that such a derogatory expression, contrary to the principles of international courtesy, should have been used by her.

Furthermore, contentions put forward by China vis-a-vis the Japanese project are inexplicit and in particular there are a number of points on which the Japanese Government invite the reconsideration of the Chinese Government. For instance, argument is advanced by her that the rights formerly enjoyed by Germany in regard to the lease of Kiaochow, having totally expired in consequence of China’s declaration of war against Germany, should be restored to China without conditions. This not only is an argument hardly warranted by the principles and usages of international law or by treaties in existence between China and Japan but may be said to aim at the frustration of effects of the Versailles Treaty.

On May 20th last the German representative in China declared in his statement addressed to the Chinese Foreign Minister that by virtue of the Versailles Treaty Germany had renounced all her rights and interests which she formerly enjoyed in Shantung under Sino-German agreements and that she was no longer capable of restoring them direct to China. This declaration having been duly taken note of by the Chinese Government they are deemed to be fully cognizant of the effects produced by the Versailles Treaty. It will be remembered that the Chinese declaration of war with Germany was made in August 1917 when more than two years had already elapsed since the transfer of former German rights to Japan had been fully recognized by China in virtue of the Sino-Japanese treaty concerning Kiaochow and other matters. China made her declaration of war only at the instance of the allied powers, receiving in return for her action various advantages at their hands, and Chinese efforts in the war amounted to deportation of Germans and Austrians from China and the despatch of workmen to France.

[Page 627]

The Chinese contention therefore that the rights of lease expired entirely as a natural consequence of the Chinese declaration of war against Germany may be said to be tantamount to wholesale negation of treaties in existence as well as of all established facts. The Japanese Government cannot but conclude that China has no respect for the fundamental idea which should govern negotiations of the Shantung question.

As regards the Chinese assertion concerning the Shantung railway, it appears that she intends to place its management under her own complete control and to leave for the time being one-half of the whole value of the railway unpaid. Japan, while entertaining no intention whatever of operating the railway exclusively by herself in any manner, is unable, in view of the actual railway conditions obtaining in China, to concur in the suggestion that the railway management should be left entirely in the hands of the Chinese Government. In a word, Japan’s desire is to operate the railway in the most successful manner by means of harmonious co-operation of both countries.

It will be recalled that the Shantung railway was operated by Germany alone so long as it remained in her hands and that Japan has taken it over from her at the sacrifice of lives and treasure. In spite of that, Japan intends to work it as a joint enterprise with China on the basis of utmost impartiality.

Further, it was in September 1918, a date long after the Chinese declaration of war against Germany, that it was arranged between China and Japan to operate the Shantung Railway as their joint enterprise. The Japanese Government are therefore unable to understand the Chinese contention in this respect, impugning the Japanese claim as being an act which violates Chinese sovereignty.

It is to be observed that the reparation commission after having duly appraised the value of the Shantung Railway, together with appertaining mines, placed it to the credit account of Germany with a view to setting it off against the indemnity to be paid by that Power. It is therefore inadmissible that China should claim to retain one-half of such railway properties in her hands without conditions.

As regards the Japanese proposal relative to public property of Germany, the Japanese, while ready in principle to restore the socalled administrative public property to China, has no intention whatever of retaining all other public property in her hands, her wish being to make, in the interest not only of the people of China and Japan, but also of the foreign population in general, a satisfactory arrangement with China looking to impartial disposition of such property. The Chinese claim to hold it entirely in Chinese hands is one which can hardly be justified in the nature of the case.

[Page 628]

Moreover, the Japanese Government must confess that they are unable to comprehend the Chinese assertion that the Japanese project is entirely at variance with the principles underlying all treaties between China and foreign powers. The Japanese Government, however, are happy to declare hereby that whenever the Chinese Government, in full appreciation of the main purpose of the Japanese proposal and upon giving more deliberate consideration to the question now at issue, and in the interest of cordial relations between China and Japan, shall express their willingness to open negotiations Japan will always be found ready to embark upon such negotiations.

  1. See note from Chinese Minister, supra.
  2. According to the American Minister to China, this communication was dated Oct, 15 and was handed to the Chinese Minister for Foreign Affairs by the Japanese Minister to China on Oct. 19; see despatch no. 155, Nov. 10, p. 631.
  3. See note from the Japanese Ambassador, p. 617.