793.003/658
The Under Secretary of State (Castle) to the British Ambassador (Lindsay)
My Dear Mr. Ambassador: I have to acknowledge the receipt of Mr. Campbell’s50 letter of May 3, 1931,51 enclosing a summary of the instructions sent by the British Foreign Office to the British Minister to China on the subject of extraterritoriality, and stating first, that although the argument that foreign rights in Shanghai would lapse automatically in three years had not been presented to the British Government, it would contest such an argument; secondly, that the British Government understands that the attitude of the Government of the United States in regard to reserved areas coincides exactly with its own; and thirdly, that authority has been given to the British Minister to China to give way to the Chinese Government as regards Hankow in the last resort, but not as regards Shanghai (the whole area) or Tientsin or at present Canton.
The Department is gratified to note that the attitude of the British Government on these points coincides with that of the American Government.
The Department notes with interest the suggestion of the British Government, referred to in the summary of the instructions of the British Minister to China, that an international commission be created, after the coming into force of the new Treaty, to study and make recommendations in regard to the excluded areas. It is believed that this suggestion, if adopted, would open the way for a final solution of the intricate problems involved in the protection of foreign interests in the reserved areas, particularly at Shanghai.
With regard to Hankow, the Department trusts that, in case the point arrives at which the British Minister to China deems it advisable to give way, his intention so to do may be made known in advance or immediately to the American Minister to China and/or to the Department.
I am [etc.]