793.94/1246

The Minister in China ( Schurman ) to the Secretary of State

No. 159

Sir: With reference to my despatch No. 148, of November 4, 1921,61 enclosing newspaper clippings regarding the recent Japanese memorandum to the Chinese Government dated October 15th,62 in reply to the Chinese memorandum dated October 5th,63 relative to Shantung, I have the honor to transmit herewith for the Department’s information a translation of an introductory statement handed in Chinese text to the Chung Mei News Agency at 7 p.m., on October 29, 1921.

I have [etc.]

Jacob Gould Schurman
[Enclosure—Translation]

Statement by the Chinese Foreign Office

In the recent Japanese memorandum to the Chinese Government regarding the Shantung question an allegation was made that the Peking Government had unofficially notified the Tokyo Government of China’s desire to open negotiations with Japan regarding Shantung. The fact is that the Foreign Office, when questioned by numerous popular societies and organizations with regard to the Government’s plans for settling the Shantung case, intimated that the Commission for Discussion of the Versailles Peace Treaty had drawn up a project covering the restoration of Shantung for submission to the Council of the League of Nations. The project mentioned by the Foreign Office was discussed by Mr. Yu Ching-ho, a Councillor of the Ministry of War, to [with?] General Banzai, Japanese Advisor to the same Ministry, and through this channel became known to the Japanese Government, which took it as a basis for its recent offer for direct negotiations between the two countries and mentioned it in its memorandum of October 19th, which was published to the world.

Therefore the Foreign Office, feeling that this fact requires explanation, is making public all of the eight points drafted by the Commission [Page 630] for Discussion of the Versailles Peace Treaty for submission to the Council of the League of Nations. The points in question, accompanied by an introductory statement, follow:

“In view of the impossibility of settling the Shantung question with Japan, China presents her case to the League of Nations for settlement, basing her claims on her rights obtained upon her declaration of war on Germany. As a result of this declaration of war China, being entitled to receive back all the rights and privileges formerly enjoyed by Germany in the Shantung Leased Territory, feels convinced of the justice of her claims in this case, as follows:

“1. The entire Leased Territory of Kiaochao shall be taken back by China, and China will turn Tsingtao into an open port and govern it exactly as under the former German administration.

“No customs duties shall be imposed on goods brought into the Port of Tsingtao for sale in the Leased Territory.

“A Municipal Administrative Bureau shall be established similar to those at Tientsin and Hankow (in the former German and Austrian Concessions at those places).

“2. China will not recognize the validity of the forcible purchases of land in the Leased Territory from the Chinese by the Japanese during the period of Japanese military occupation.

“3. All property in Tsingtao formerly belonging to the German Government, such as wharves, bridges (pontoons), godowns, lighthouses and so forth, shall be turned over to the Chinese Maritime Customs.

“The electric light works, water works, slaughter houses, mining administration, hospitals and so forth may be turned over to the control of the Municipal Administrative Bureau.

“The fortifications and barracks shall be controlled directly by the Central Chinese Government: and, as these properties have been under Japanese control for several years, separate arrangements may be made with Japan for their delivery to and control by China.

“As the sale of salt is a Government monopoly and, as this industry was not carried on by the Germans in their day, all of the salt fields shall be returned to China. If, however, Japan should be in need of salt, the Chinese Government will permit Japan to buy it under a special license providing for specified quantities over a stated period of years.

“4. With regard to the Shantung Railways, the Tsinanfu-Shuntehfu and Kaomi-Hsuchowfu Lines shall be turned over to the new consortium for operation. The Kiaochao-Tsinanfu Line shall either be operated immediately by China herself or a certain date shall be fixed for the return of the Line to China, Until, however, the Line is turned over to China it may be temporarily operated by China and Japan as far as its purely financial and technical affairs are concerned.

“All the shares of the Railway formerly belonging to the German Government shall be equally divided between China and Japan: and the refunding of all shares in the possession of private German shareholders shall, if it should prove necessary, be made by China and Japan equally.

[Page 631]

“China shall be entitled to one-half of the surplus profits of the Railway since its seizure and operation by Japan: and this arrangement shall remain effective until the Railway is definitely and absolutely returned to the control of China.

“All departments of the Railway that have a political character, such as the Railway Police, shall be administered by China alone.

“5. All Japanese troops in Shantung Province shall be withdrawn at once.

“6. All mines formerly operated by Germans along the Railway shall be conducted as joint enterprises for a stated period of time and then be restored to China absolutely.

“7. The Tsingtao-Chefoo and Tsingtao-Shanghai cables are entirely within Chinese territory and must, therefore, be returned to China,

“The wireless station at Tsinanfu, which was installed by the Japanese Government, shall also be returned to China, who will pay Japan for the cost of its construction.

“8. Japan shall make a statement that all rights and privileges formerly enjoyed by Germany as a result of treaties or agreements with China shall, with the exception of such rights and privileges as China and Japan may later mutually agree upon, be waived by Japan: and henceforth Japan shall make no demands in connection with the rights and privileges that she is thus expected to waive.”

  1. Not printed.
  2. Ante, p. 625.
  3. See note from the Chinese Minister, p. 622.