Papers Relating to the Foreign Relations of the United States, 1921, Volume II

862i.01/154½

Memorandum of a Conversation between the Secretary of State and the Japanese Ambassador (Shidehara), August 19, 1921

August 19, 1921

The Secretary handed to the Ambassador the annexed memorandum which was read and amplified merely by emphasizing different points of the text. The Ambassador called attention to the fact that he had left two memoranda, one containing the quotation on the first page of the annexed memorandum, and the other relating to the allocation of the German cables. The Secretary said that there was no objection to the allocation of the German cables in the manner suggested, provided other matters were satisfactorily adjusted.

Referring to the final paragraph on page 3 of the memorandum, the Ambassador asked whether it was proposed to have a convention before there was a communication with the Netherlands, China and the Great Northern Telegraph Company, as stated in paragraph 9 of the memorandum of the Japanese Ambassador, which was quoted. The Secretary said that he was not attaching first importance to any matter of procedure; that in view of the position taken by the United States in the Yap note, he supposed that it would be desirable that the legal situation should be cleared up; that this could appropriately be done by a Convention between the Principal Allied and Associated Powers in whose favor Germany had renounced her title and interest in the Island of Yap; that it seemed desirable that this Convention should contain the provisions regarding the privileges of communication, etc., and proceed along the lines of the attached memorandum; and that having entered into this Convention there would be proper communication or if desired an agreement with the Netherlands, China and the Great Northern Telegraph Co. in the sense of the paragraph to which the Ambassador referred. Referring to sub-division A of the first paragraph of the first page of the memorandum, the Ambassador asked whether reference was made to those who would be employed and who would reside on the Island in connection with the cable station; that is, whose residence there would be pertinent to the operation of the cable.

The Secretary said that he supposed that in view of the characteristics of the Island there was no prospect of any commerce and that there was no danger of any influx of Americans to live in such a climate where there was no trade and nothing to be produced. It was assumed that no one would go there for residence except in connection with the cable operation, but that it was advisable that there should be no unnecessary restriction; in other words that there should be no basis for a claim on the part of Japan to regulate the number of employees or the number of persons who would be accorded the right of residence. The Secretary thought that in view of the conditions which obtained at Yap, the right of residence and acquisition of property could be freely accorded without restriction. The Ambassador said that he understood that all this related to the operation of cables and the Secretary said also that he assumed that that was the business which would lead to the residence of Americans upon the Island.

The Ambassador referred to Sub-Division F; that is the provision on page 2 of the memorandum, with respect to taxes, port, harbor or landing charges, etc. to be exacted. The Ambassador asked with respect to taxes upon income and property of foreigners who might be on the Island, but who had nothing to do with the cable. The Secretary referred to the population, saying that he understood there were about 100 foreigners of whom 70 were Japanese and repeated that he did not understand there was any investment there that amounted to anything or any lucrative employment. On further inquiry from the Ambassador as to taxes and the broad statement as to property, persons or vessels to which the Ambassador seemed to attach considerable importance, in view of the possibility that those other than Japanese might reside on the Island and be in business there apart from cable operation, the Secretary said that he desired to safeguard two points:

(1) that there should be no burden upon the operation and use of the cables and what was so pertinent thereto, the establishments and residences necessary, the furnishing of supplies for those resident or employed and the repairs, etc.; and

(2) that in addition to the freedom of the cable establishments and operations, there should be no discriminatory exactions of any sort.

The Secretary called particular attention to radiotelegraphic service and the reasons therefor, amplifying the statements contained in the memorandum in this regard but in the same sense. The Ambassador expressed no objection to this.

The Ambassador, however, did not commit himself, but requested an opportunity for consideration and took the memorandum with him.

[Annex]

The Department of State to the Japanese Embassy

Washington , [ August 19, 1921 .]

Memorandum

Tentative draft submitted by Japanese Ambassador has the following:

“It is agreed that the United States shall have free access to the Island of Yap on the footing of entire equality with Japan or any other nation, in all that relates to the landing and operation of the existing Yap–Guam cable or of any cable which may hereafter be laid by the United States or its nationals.”

Comments:

First. It is understood that this would involve and that the formal agreement would include

(a) Rights of residence without restriction; and rights of acquisition and enjoyment and undisturbed possession, upon a footing of entire equality with Japan or any other nation or their respective nationals of all property and interests, both personal and real, including lands, buildings, residences, offices, works and appurtenances.

(b) No permit or license to be required for the enjoyment of any of these rights and privileges.

(c) Each country to be free to operate both ends of its cables either directly or through its nationals including corporations or associations.

(d) No cable censorship or supervision of operation or messages.

(e) Free entry and exit for persons and property.

(f) No taxes, port, harbor or landing charges, or exactions, either with respect to operation of cables or to property, persons or vessels.

(g) No discriminatory police regulation.

Second. Radiotelegraphic Service. It is recognized that the Japanese Government should maintain wireless (radiotelegraphic) service between Yap and Japan, and also that it may be impractical to maintain more than a single wireless station upon the Island of Yap without an impairment of efficiency through mutual interference.

On the other hand, the equality of right with respect to all electrical communication should be recognized and the same rights and privileges should be accorded to the United States and its nationals with respect to radiotelegraphic service as with respect to cables.

It would be agreeable, however, to have an agreement that so long as the Japanese Government should maintain on the Island of Yap an adequate radiotelegraphic station, cooperating effectively with the cables and with other radio stations on ships and shore, without discriminatory exactions or preferences, the exercise of the right to establish radiotelegraphic stations at Yap by other governments or nationals should be suspended.

The memorandum as to the allocation of cables submitted by the Japanese Ambassador contains the following:

“9. The Principal Allied and Associated Governments jointly to communicate with The Netherlands, China and the Great Northern Telegraph Company, in order to secure the necessary consent of each of these parties to the terms of the present arrangement in which such parties are respectively interested.”

Comment:

First. There should be an appropriate convention between the Principal Allied and Associated Powers to embody the above provisions. Such convention should also contain suitable provisions relating to administration, such as are found in Articles 3, 4 and 5 of the mandate purporting to have been granted on behalf of the Principal Allied and Associated Powers, but to which the United States has not agreed. It should also contain provisions for extradition and expropriation of property.