793.003/689: Telegram

The Minister in China (Johnson) to the Secretary of State

[Paraphrase]

Department’s 38, May 9, noon.

(1)
I have brought the Department up-to-date (see my May 19, 9 a.m., and May 19, 3 p.m.) on the British negotiations, inclusive of the drafts agreed upon and pending. Lampson has asked that I obtain for him any new matter which the Department and C. C. Wu may be able to agree upon for possible use here in their negotiations.
(2)
As the matter now stands, an agreement has been reached by the British and Chinese on all points save the preamble, the reserved areas, and the duration of the treaty.
(3)
The preamble probably will not give trouble.
(4)
Nothing has been accomplished with reference to reserved areas. Lampson’s instructions are worded in such fashion that he has not been willing to take the risk of even an intimation to the Chinese Foreign Office of his readiness to make any concession on this point, although his instructions contemplate yielding Hankow and, if need be, Shameen. The initiative in making a concession in this regard will have to be taken by the British and us, since there is no evidence [Page 859] that C. T. Wang will. Lampson is seeking additional instructions concerning this question and, unless authorized to make a concession, contemplates returning for a recess to Peiping, not sooner than May 25 and not later than [May 30?], as he does not expect Dr. Wang to give in.
(5)
In regard to the treaty’s duration, C. T. Wang offered a 5-year treaty and 3 years for Shanghai and the articles on Special Chambers and legal counselors. Lampson replied that he must insist upon a 10-year treaty covering Shanghai and 7 years for Special Chambers and legal counselors. The matter remains unsettled.
(6)
Respecting our comments on the American draft as a whole, Lampson and I feel it is a good one. The draft still contains some matters which the British have been unable to get here in their negotiations, so we shall be interested to learn whether the Department is able to obtain C. C. Wu’s acceptance of them. I apprehend from something said to me the other day by Dr. Wang that you will be unable to get Chinese agreement to the new provision in article 2 for cases involving Americans as plaintiffs and defendants to be heard before Special Chambers.
(7)
As to the last paragraph of article 3 on legal counselors, the Department’s wording appears to me to be not so good as that of the paragraph in the British text which I communicated to the Department in my March 28, 10 a.m., paragraph 6. The American draft says, “each of the respective Chinese courts referred to in article 2 shall begin to exercise jurisdiction,” etc., while the British text says, “the Chinese courts referred to in article 1 shall not begin to exercise jurisdiction,” etc. I think it preferable for the word “not” to be retained.
(8)
Adding philanthropic institutions to article 12 is wise. The Chinese are asking for, and the British will agree to, the addition of the words “of such organizations” following the words “comply with Chinese laws relating to registration” in the first sentence of article 12.
(9)
Regarding the long letter annex, Lampson once tried to throw all the British additional matters into a single letter, but Hsu Mo was found to be unwilling. The American form appears preferable to both of us if it can be obtained. Nor have the British been able to get the Chinese to agree to putting into letters the matter which now is contained in their minutes, agreed though not to be published.
(10)
The political situation is most tense. The Chinese here seem to take a very gloomy view and to be persuaded of an almost inevitable outbreak of warfare. Sun Fo and Wang Chung-hui both remain at Shanghai, where responsible Government members are pleading with them to return to Nanking. From statements made to me here, I am persuaded that the Government doubts C. C. Wu’s [Page 860] loyalty. Wang Ching-wei, who has left Hong Kong, is reported en route to Tientsin. The Chinese say that an outbreak of war would involve more territory and active military leaders than previously. The Cantonese group seems to be, at any rate for the moment, definitely out in opposition to the Government. Marshal Chang Hsueh-liang left today by plane for the North after an apparently cordial and successful visit here.
Johnson