711.933/144

Memorandum by the Chief of the Division of Far Eastern Affairs (Hornbeck) of a Conversation With Mr. Thomas F. Millard, Adviser to the Chinese Government

[Extract]

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Mr. Millard asked whether the American Government’s reply to the Chinese Government’s note on extraterritoriality had been made public yet. I stated that it had not been made public from official sources but that the contents appeared to have been disclosed somewhere in China and newspapers there had published what purported to be the text. Mr. Millard said that he had read the note and that he observed that the American Government declined to accede to the Chinese Government’s request. He then talked at length about the desirability of close and friendly relations between China and the United States. He said that he had for fifteen years told the Chinese that their relations with the United States were the most important in the field of their foreign relations. He thought that the American Government should do everything possible to encourage and strengthen the present Nanking Government. He said that if the Powers, particularly the United States, persisted in refusing to give up extraterritoriality, the radical element in China would be strengthened in its effort to overthrow the present Nanking administration, and if the radicals, some of whom he said were highly intelligent men, were to get into the saddle, there is no telling to what length they would go; there might come a violent anti-foreign demonstration in China. I inquired whether he thought that either the granting or the withholding of assent to the abolition of extraterritoriality would materially affect the course of events in China’s domestic politics. He said that he thought it would; that every victory which the present administration gained in the field of foreign relations tended by just so much to strengthen its position. I said [Page 603] that this Government had long made it a point to preserve a position of neutrality as among the contending Chinese factions and parties, and that, while we wished to deal fairly and justly and in a friendly manner with any administration which might be in power in China, it was probably a fact that each of the more important of the foreign governments was inclined now more than ever before to pursue a policy of “hands off” with regard to China’s domestic struggles.

Mr. Millard said that extraterritoriality was not doing any one any good. I stated that some American citizens make to us statements to the contrary. Mr. Millard said that it was going to have to be given up sooner or later and he thought the American Government should take the lead in giving it up sooner; he did not think that it should wait until the expiration of the present treaty. I stated that the American Government had repeatedly made it known to the Chinese Government that it was willing to discuss, without waiting for the period of the expiration of the treaty, the question of concluding a new treaty. Mr. Millard said that two or three years ago and earlier he had suggested to the Chinese various schemes for a gradual graduated abolition, but that the time for that sort of thing had gone by; he thought that no Chinese Government today could propose, and he wondered whether it could discuss anything short of abolition. He said that public opinion had developed very strongly in China, and, if the Powers were obstinate, public opinion might force the hand of the Government. I remarked that in the past public opinion in China had usually been inspired from official sources. Mr. Millard said that the bolsheviks had had a good deal to do with the creation of public opinion with regard to the treaties; that the present Government had ridden into power on the idea of regaining lost rights, and that no matter who did the inspiring, the present public opinion was a fact which must be faced. I stated that, so far as the American Government was concerned, we would be glad to give up extraterritorial rights at the earliest practicable moment, but that, by way of arriving at that moment, it was to be hoped that the Chinese would concentrate upon the problem of perfecting their administration so that they would be ready effectively to assume and exercise complete jurisdiction. Mr. Millard said that they were ready.

Mr. Millard said that there were a number of questions which he would like to talk over, such as the rendition of the foreign settlements and concessions, the removal of the legations to Nanking, etc. I stated that, so far as the foreign settlements and concessions were concerned, the United States had little if anything to do with the question—at least so far as the question of rendition is concerned. I said that I would be glad to talk over any questions.

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