793.003/782

The Secretary of State to the Ambassador in Great Britain (Dawes)

No. 964

Sir: Referring to your despatch No. 2297 of October 6, 1931, transmitting a memorandum dated October 5, 1931, prepared by the Foreign Office, commenting upon the Department’s memorandum of July 14, 1931, and enclosure therewith, in regard to Article XVI—Reserved Areas—of the proposed new Treaty with China relating to extraterritorial rights, there is enclosed herewith the Department’s memorandum in reply.

The Department desires that you communicate the original of this memorandum to the Foreign Office and, in so doing, you may inform the Foreign Office that the text thereof has been telegraphed to the American Minister to China.

Very truly yours,

For the Secretary of State:
James Grafton Rogers
[Enclosure]

The Department of State to the British Foreign Office

Memorandum

The Department of State has received through the American Embassy in London the Foreign Office’s memorandum of October 5, 1931, commenting upon the Department’s memorandum of July 14, 1931, and enclosure therewith, in regard to Article XVI—Reserved Areas—of the proposed new Treaty with China.

The Department has noted the comment of the Foreign Office. In view, however, of the present situation in China arising out of the crisis in Manchuria, it is believed that the future course of the negotiations in regard to extraterritoriality must await further developments.

The Department notes that the British Foreign Office views with “considerable concern” the Department’s proposal to abandon, in the last resort, the reservation of Tientsin. In this connection, the Department desires to point out that it has all along contended for the reservation of four places in China, namely, Shanghai, Tientsin, [Page 919] Hankow and Canton; that it has not at any time in the conduct of its negotiations with the Chinese Legation in Washington or with the Chinese Ministry of Foreign Affairs in Nanking intimated that it was prepared to give up a reservation of any of these four places; that the Department’s suggestion that Tientsin might be given up was offered as an alternative to be considered only “in the last resort” and was and is believed to be in accord with views of the Foreign Office as communicated to the Department by the British Ambassador in Washington in a memorandum dated March 7, 1931,8 summarizing the substance of instructions which had been sent by the Foreign Office to the British Minister to China, as follows:

“With regard to point (c) in paragraph five above (excluded areas), His Majesty’s Government consider that the exclusion of Shanghai is the most important interest at stake, even if the area excluded is limited to the International Settlement only. This seems to them vitally necessary. Canton, Hankow and Tientsin are regarded as important, but His Majesty’s Government think they might be abandoned as a last resort.”

However, during the future course of its negotiations with the Chinese Government, the Department will keep in mind the views of the Foreign Office on this question.

  1. For full text of memorandum, see p. 741.