893.5045/127: Telegram
The Chargé in China (Mayer) to the Secretary of State
[Received 10:47 p.m.]
268. My 267, July 9, 7 p.m. Diplomatic representatives received yesterday through consular channels communication dated July 8th in which Shanghai Municipal Council declined to accede to conclusions of the diplomatic representatives. No reply has been received to the communication sent in behalf of diplomatic representatives to the American, British, and Japanese consuls on the 8th.
2. Diplomatic representatives met this morning to consider situation. British Chargé d’Affaires has received copy of instructions telegraphed by his Government to its consul general at Shanghai directing him to use every effort to obtain the agreement of the Municipal Council to the conclusions of the diplomatic representatives. Telegram from senior consul furthermore contained slight intimation that the Council might reconsider its position. In view of [Page 682] the possibility of such reconsideration diplomatic representatives decided to await further word from Shanghai consular body before taking action on the Council’s letter; but because of the strong probability that the Council would remain obdurate in the hope that the present crisis would enable it advantageously to force the long-standing issue as to its claim to practical autonomy on the part of the Shanghai administration, they felt it advisable to seek without delay such instructions as would enable them to meet that issue with full authorization to undertake if necessary negotiations for the modification of the existing land regulations. They therefore agreed to send their respective Governments the following identic telegram the substance of which was suggested by MacMurray instead of the telegram proposed by the French Minister at the previous meeting:
“The Shanghai Municipal Council, having received on July 6th the conclusions adopted by the diplomatic representatives as a result of the sending of the diplomatic commission, has now replied with an absolute refusal to agree to them, claiming that it is ‘primarily responsible only to the electorate of the International Settlement of Shanghai’, the interested diplomatic representatives apprehend that it will prove impossible to induce the Council to modify its position.
In view of the anomalous situation arising from a denial by the Settlement administration of the authority and responsibility of the diplomatic representatives with respect to matters which are of direct political concern in the relations between China and the powers by virtue of whose authority the Settlement was created and is maintained, the diplomatic representatives find themselves under the necessity of asking of their Governments authorization to reconsider, if need be in consultation with the Chinese authorities, the status of the Settlement administration as now constituted under existing regulations, with a view to the definite establishment of the Settlement upon a basis eliminating any possibility of doubt that the diplomatic representatives have an authority commensurate with their international responsibilities.
In requesting such authorization the diplomatic representatives suggest that any exchanges of views on this subject among the interested Governments should be carried on in London in order to expedite a conclusion which is urgently necessary for their guidance in a situation which is rapidly becoming more complicated.
3. [sic] The diplomatic representatives fully realize that negotiations regarding any fundamental change in the land regulations could at the present time be carried on only under the most serious tactical disadvantage vis-à-vis the Chinese but it is in the first place recognized that certain modifications in detail must in fact be considered incidentally to the settlement of the Shanghai crisis; and it is furthermore felt that a knowledge of the danger of inaugurating any fundamental revision of the land regulations will act as a powerful inducement to the Council to reconsider its position.”
4. MacMurray and I earnestly recommend that the Department give the authorization requested, although we are hopeful that the mere possession of such authorization by the several diplomatic [Page 683] representatives would in fact furnish the means of obviating the necessity for availing ourselves of that authorization for the purpose of any fundamental revision of the regulations.
5. It should be recalled that in previous communications to the Chinese Government the diplomatic representatives have agreed to seek the authority of their respective Governments for discussion with the Chinese Government, after settlement of Shanghai incidents and as germane thereto, of some form of reorganization of the Shanghai International Settlement such as inclusion of Chinese on the Municipal Council and the like should the Chinese Government so request. I consider that this constitutes a further argument in favor of our being empowered in such a manner as to be able to prevent Shanghai municipal authorities from rendering abortive our negotiations in respect of matters concerned with the carrying out of major policy in China at this critical time.