Papers Relating to the Foreign Relations of the United States, 1925, Volume I

893.74/622: Telegram

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

Peking, October 5, 1925—11 a.m.
[Received 3:10 p.m.]

426. My telegram No. 421, September 26, 8 p.m.³⁰

1. After two weeks of discussion with the Minister for Foreign Affairs, … during which the representatives of the interested American companies have made what they consider the utmost possible concessions, it has now been agreed that subject to possible verbal alterations, the Minister for Foreign Affairs will address to me a note informing me that “the Chinese Government has the intention to carry (Federal contract) into effect at the earliest moment,” and at the same time expressing the earnest hope that the representatives of the American companies concerned will discuss with the Chinese and Japanese “a fundamentally fair and achieving solution.” I am to reply taking note of the intention of the Chinese Government to carry the contract into effect at the earliest moment and continuing: “I note also the expression of the earnest hope on the part of the Chinese Government that discussions may be had among the several parties in interest. In this connection I am happy to confirm in behalf of the American companies concerned, and with the sympathetic approbation of the American Government, the assurance which I have hitherto given to His Excellency the Chief Executive, in response to his views, that when the first steps in carrying out the contract have been taken, the representatives of the American companies will hold discussions forthwith in the most friendly and generous spirit with the appropriate authorities of the Chinese Government, and with the representatives of the Japanese interests involved in wireless communications in China, in order to arrive at an [apparent omission] of their several business interests on a basis fundamentally fair and beneficial to all parties concerned.” This interchange of notes is to be accompanied by a procès-verbal, to be initialed by the Chinese Secretary and the Secretary of the Foreign Office, recording that I interpreted the phrase “first steps in carrying out the contract” as implying, first, the execution and delivery of the revised contract; second, the issuance of instructions to the Chinese Legation at Washington to execute and deliver the bonds to the American company at the earliest moment; and third, the issuance of instructions to the local authorities (at Shanghai) “to take steps at the earliest moment in order that the company may take possession of the land necessary for the construction of the main station” and that the Foreign Minister concurred in this explanation.

2. As soon as we had reached an agreement in principle on these documents the Minister for Foreign Affairs said that in consideration of his having done this much for our interests he felt warranted in asking me for a definite statement of our Government’s attitude in regard to the forthcoming conference. I told him that the exchange of these documents did not in itself place us under any obligations and that I wished to make this clear to him in order that he might if necessary reconsider the matter before making the exchange. I recalled that the proposed documents call upon Chinese Government to do nothing new—in fact placed some conditions and qualifications upon what the Chinese Government was already definitely obligated to do; and that it was simply a matter of bringing about the fulfillment by that Government of obligations whose nonfulfillment had led us to doubt the willingness or ability of the Chinese Government to live up to the further duties which it would naturally have to assume in connection with aspirations which it is seeking to realize at the conference. I added that in this aspect of matter the making of a new promise was a hopeful indication of desire of the Chinese to keep faith with us, but that of course their performance of the obligations thus newly undertaken would afford a measure of the confidence with which we may feel warranted in dealing with them in the conference.

[3?] He then urged that this new evidence of Chinese good will ought at least to be a basis for our discussing and considering frankly with the Chinese authorities the program of the conference, and he outlined in very general terms the program in view. Upon his asking for my comment on it I stated that it was impossible for me to form an opinion of a general program without any details making possible judgment as to the practicability of its various items and said that I would of course be glad to receive from the Chinese experts detailed explanations of their proposals but that until such details had been considered by my Government and by the delegation it would manifestly be impossible to give more than a general assurance of our good will and desire to be of help to China.

4. He indicated some disappointment that unwillingness to make a more definite commitment as to our attitude on the general program or on the particular item of “tariff autonomy.”

It is entirely possible that failing to receive from us some new consideration for the observance of our existing rights the Chinese Government may even yet refuse to proceed with the proposed interchange of notes.

5. Not repeated to Tokyo.

MacMurray

30. Not printed.