793.003/555
Memorandum by the Chief of the Division of Far Eastern Affairs (Hornbeck) of a Conversation With the Counselor of the Japanese Embassy (Kato)
Mr. Kato called and said he was instructed to bring to the Department a memorandum; that this memorandum dealt with extraterritoriality; that it contained in a somewhat tentative form a statement which the Japanese Government intended its Chargé in China should give to the Chinese Foreign Office; that it contained a proposal, but in very general terms. Mr. Kato then handed Mr. Hornbeck a three-page memorandum hereto attached.51
Upon perusal, this memorandum is found to be extremely vague. It implies a willingness on the part of the Japanese Government “to cooperate to a rational adjustment compatible with the essential interests of the Japanese and with the actual conditions prevailing in China.” It proposes gradual relinquishment “according to a progressive scheme framed with reference to subject matter, geographical area or other considerations.” It implies that Japan is willing to give up civil jurisdiction, except in special areas and is willing to discuss, in relation to conditions existing in China, relinquishment at some future time of criminal jurisdiction. The one thing with regard to which it approaches precision is in the proposal that “concurrently with the relinquishment of extraterritoriality and civil matters, Japanese subjects shall be permitted to reside and carry on trades in all parts of the country …” It also calls for most-favored nation treatment.
Mr. Kato asked what Mr. Hornbeck thought of this “proposal.” Mr. Hornbeck replied that it seemed very similar to what the Japanese had proposed at a much earlier date. Mr. Kato said that it was substantially the same except that it now brought in Japanese willingness to discuss relinquishment of criminal jurisdiction. Mr. Hornbeck asked what it was that moved the Japanese Government to prepare this proposal at this time: Had they received any new communication from the Chinese? Mr. Kato replied that they had not, that there had been Japanese-Chinese discussions in February a year ago and the matter had since stood substantially open, but that the Japanese Government understood that the British and the American Governments were now moving in the matter and the Japanese Government felt that it should move.
Mr. Hornbeck inquired whether Mr. Kato envisaged what might be the Chinese reply to this proposal. Mr. Kato said that he did not, [Page 747] and he inquired what Mr. Hornbeck thought might be the reply. Mr. Hornbeck said that he would not be surprised if the Chinese replied that they had heard the substance of these proposals before. He said that the Chinese were for the moment at least taking the position that they must insist on complete relinquishment of extraterritorial rights and could make no concessions.
Mr. Kato said that the Japanese Government had heard that the British were preparing to “relinquish everything.” Mr. Hornbeck asked if he might inquire where the Japanese Government had heard that. Mr. Kato said he did not know. Mr. Hornbeck said that we had been told, through diplomatic channels not our own, that there was such a rumor, and that it would be interesting to know whether the source or channel was the same in both cases. Mr. Kato repeated that he did not know whence the Japanese Government had gotten news of this rumor.
Mr. Hornbeck said that we had informed the Chinese of points which we were willing to discuss; that the Chinese had asked us to agree to certain principles which, if agreed to, would leave little if anything concerning which to negotiate; that we had not replied; and that for the moment at least we were taking no new steps; we were engaged in “watchful waiting”; and that if and when we took a new step of any consequence, we would, if possible, inform the Embassy.
(Note: For comment, see separate page.52)