793.003/5578/9

Memorandum by the American Minister in China (Johnson) of a Conversation With the Chinese Minister for Foreign Affairs (C. T. Wang)38

In the course of conversation this morning Dr. Wang informed me that he had received a communication from Dr. C. C. Wu in Washington to the effect that as regards negotiations there there were three points which remained to be settled. These points were (a) the United States was insisting on the exclusion of four areas; (b) the United States was asking for a ten mile limit in connection with each of these areas; (c) the United States was insisting upon a term of ten years. He stated that in regard to (b) and (c) Dr. Wu had informed him that the Department of State was prepared to accept any limit to these areas arranged with him by British Minister and myself and that in regard to the term the Department of State would accept any term between five and ten years that might be agreed to here. Dr. Wang stated that he had instructed Wu that on point (a) Chinese would never agree to four areas; that in regard to point (b) he thought it probable that he could persuade his Government to accept the exclusion of the area of Greater Shanghai, provided that it was agreed that the extra-Settlement roads were brought under the control of the Chinese Government as regards taxation, police and maintenance. He [Page 841] said that the Chinese attitude on the subject of a greater area at Shanghai was dictated by a fear that they might find themselves confronted by an agreement to the extension of the International Settlement. He said that he appreciated that there was objection to limiting the excluded area to the actual boundaries of the International Settlement due to the large number of foreigners living outside those boundaries and yet having daily occasion to visit the Settlement. The area of the municipality of Greater Shanghai should be sufficient to cover all the requirements. In regard to point (c) the Chinese Government must insist on a term of not more than three years. He said that his strongest point in persuading his Government to accept a proposal for the exclusion of Shanghai was the argument that the last treaty would expire in 1934. I understood him to use the term three years in connection with the exclusion of Shanghai and not in connection with the term of the treaty itself, but I did not discuss this matter with him as I did not know where it might lead.

Nelson Trusler Johnson
  1. Copy transmitted to the Department by the Minister without covering despatch; received June 11. Substance reported by the Minister in par. 3 of his telegram of May 6, 1931, noon; received May 6, 12:55 p.m. (793.003/660)