393.1164/98
The Minister in China (
MacMurray
) to the Secretary of State
Peking
,
November 8,
1928
.
[Received December 27.]
No. 1742
Sir: I have the honor to enclose copy of Consul
General Cunningham’s despatch No. 5716, of October 27, 1928, concerning
the registration of American missionary educational institutions with
the Nationalist authorities.
In this connection, the Department’s attention is invited to Consul
Adam’s despatch to the Legation No. 568, of October 26, 1928,55 regarding the seizure by
the Chinese authorities of heroin from an American company, copies of
which were sent direct from Hankow to the Department.
It is believed that the two incidents reported in these despatches give a
distinct forewarning of the difficulties which, from now on, will be
increasingly experienced by American interests in China, both business
and missionary. The Nationalist officials of today are more endowed [Page 574] with enthusiasm for asserting
authority and control over foreigners than with experience and judgment.
Many of them are men who have heretofore been persons of no importance,
who are without any real qualifications for the positions they hold, and
who, suddenly finding themselves possessed of unexpected power, are
inclined to exercise it unadvisedly and with utter indifference to the
rights of foreigners, and with entire disregard of economic consequences
to China itself. With such a situation, and with the Central Government
exercising only a most nominal control of the provinces, the affording
of any real protection to American interests by the Legation and by the
Consulates is certain to become exceedingly difficult, if not almost
impossible.
I have [etc.]
[Enclosure]
The Consul General at Shanghai (
Cunningham
) to the Minister in China (
MacMurray
)
Shanghai
,
October 27,
1928
.
No. 5716
Sir: With reference to the Legation’s
circular instruction No. 283 of October 2, 1928,56 I have the honor to
transmit a copy of a letter dated October 16, 1928, from the
President of the University of China,56 calling attention to the requirements of
the Nationalist Government in regard to the registration of schools,
and also a copy of this office’s reply to Dr. Rankin.
As intimated in previous correspondence, the requirements for the
registration of American schools with the Chinese authorities
compels the schools to renounce their American nationality to a
large extent and would appear to remove them from the classification
of religious institutions. In the event that the University of China
desires to file a protest and requests the assistance of this office
in resisting registration, a protest will be filed in accordance
with the Legation’s telegram of December 23, 1:00 p.m., 1927.56 Any further
precedents or instructions which the Legation considers desirable to
transmit would be very much appreciated. It is difficult to know
exactly what steps should be taken. The school might be closed as a
protest against the requirements of the Chinese authorities but this
would render useless a large American investment and it would appear
that since citizens of the United States have by treaty the right to
maintain schools in China under their own supervision, this would be
unfair both to the mission society and to the American contributors
who have a vested interest in the particular school.
I am impressed with Dr. Rankin’s reasoning as set forth in the
paragraph of his letter which states: [Page 575]
“If China may thus take charge of and
control the administration of missionary corporations and
private institutions, she may in like manner, as it would
seem, take charge of and control every private business of
any and every foreigner in China. If she may thus take
control of private business, she may through such control
destroy the business thus controlled. And thus she may
indirectly, but without question, expel every foreigner from
her domain, though apparently claiming to maintain a
friendly and peaceful relation with other nations.”
If American business concerns in China are required to register with
the Chinese authorities under the Registration Act which was
promulgated on October 29, 1927,57 the laws may be changed requiring the president
or the head of the concern to be a Chinese, and thereby place
American capital under the direct control of Chinese. This fear has
long existed in my mind and the minds of many local business men. It
is felt that such a fear is well founded and Dr. Rankin’s
illustration is very apt indeed because if once these firms are
registered, the laws may be changed in such a manner as to effect
what will be practically a confiscation of American undertakings
acquired in a legitimate manner and supported by American
capital.
I have [etc.]
[Subenclosure]
The Consul General at Shanghai (
Cunningham
) to the President of the University of China
(
Rankin
)
Shanghai
,
October 27,
1928
.
Sir: The receipt is acknowledged of your
letter of October 16, 1928,57 stating some of the requirements for the
registration with the Nationalist authorities of schools supported
by church constituencies in western lands. You state that if
registration is required, you desire to protest against each and all
of the requirements as being contrary to the spirit of amity and
good will that should obtain between different nations.
Your letter presents the question in a slightly different light from
that in which it has previously been presented. This office desires
to extend to those American institutions which seek it, all the
protection guaranteed Americans in the Sino-American treaties, which
they have a perfect right to demand. It would appear that the
attempt of the Chinese authorities to enforce the four requirements
mentioned in your letter has no authoritative basis in the treaties
and therefore, whenever you request it, a protest will be filed with
the Chinese authorities against such registration. It is certain
that neither international law [Page 576] nor the Sino-American treaties recognize the
right to confiscate legitimately acquired property of American
citizens in China. If you are approached by the Chinese authorities
seeking to require the registration of your institution, and do not
desire to comply, this office will be very glad to take up the
matter with the Chinese authorities.
It may interest you to have the following authorized statement of the
American Minister in regard to the status of institutions which may
elect to register with the Chinese Government:
[Here follows text of penultimate paragraph of instruction No. 871,
May 23, 1928, to the Minister in China, printed on page 570.]
Very respectfully yours,