Papers relating to the foreign relations of the United States, 1931, The Far East, Volume III

893.156/41: Telegram

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

Washington, July 15, 1931—3 p.m.

230. Your 389, July 4, 11 p.m.⁴¹

1. The Department concurs in the view of the Legation expressed in the first sentence of paragraph 4 of the telegram under reference and is of the opinion that every effort should be made to oppose any attempt of the Chinese Municipal authorities at Shanghai to enforce these new regulations against American nationals. Furthermore, the Department believes that this question should be discussed by the interested Ministers of the Protocol Powers⁴² with a view to an accord being reached among them in regard to similar representations to be made, either formally or informally, to the Chinese authorities either by the Ministers concerned or by their consular representatives in Shanghai. To assist you in discussing this question with your colleagues, the Department makes the following observations.

2. It is the Department’s understanding that the right to grant title to foreshore land and to prescribe the conditions governing its use is vested in the National Government of China and not in the Provincial and Municipal Governments and that any law, rule or regulation in regard to rights in foreshore property should be promulgated or approved by the National Government. The rights of the National Government in the Shanghai area are restricted by the Land Regulations of the International Settlement and by various Whangpoo Conservancy Agreements, and these rights, whether exercised by the National Government or by its duly authorized agent, may be exercised only in conformity with the provisions of the agreements herein mentioned.

3. The regulations in question, if permitted to apply to foreshore property of American nationals, would seriously impair if not destroy existing rights in immovable property lawfully acquired by American nationals and evidenced by title deeds duly stamped by the appropriate Chinese authorities or by Shengko receipts issued by the Whangpoo Conservancy Board pursuant to Paragraph 5, Supplementary Article 12 of the Whangpoo Conservancy Agreement of 1912.⁴³ The regulations, if enforced against American nationals, would also prevent their acquisition and use of foreshore property in accordance with the conservancy agreement mentioned. While, of course, the conservancy agreement referred to herein remains in force until amended or abrogated by agreement of the Chinese Government and the competent Treaty Powers, it is pertinent to note that its continued effectiveness was expressly recognized by the Chinese Government in Article 129 of the Treaty of Versailles⁴⁴ and Article 114 of the Treaty of Saint-Germain-en-Laye.⁴⁵

4. As you and the British Minister are mutually conversant with the provisions of the British and American drafts of the proposed new extraterritoriality treaties with China⁴⁶ in regard to those articles dealing with taxation and with rights in immovable property, you may discuss confidentially with the British Minister the relation of the provisions in these drafts to the new Municipal regulations under discussion. The Department would view with misgiving approval of any Municipal regulations which go further in matters of taxation than we have gone in the drafts referred to.

5. With regard to the instructions which you understand have been given to the British Consul General, referred to in paragraph 5 of your telegram, the Department does not understand why there should be any need to reaffirm title to water front property. If title documents have been duly issued in conformity with the provisions of applicable treaties or agreements, such documents would appear to constitute evidence of indefeasible title.

6. In the light of the Department’s observations you may in your discretion again communicate your comments to the Department or proceed at once to discuss the question with your colleagues.

Castle

41. Not printed.
42. See Protocol of September 7, 1901, Foreign Relations, 1901, Appendix (Affairs in China), pp. 312, 318.
43. Treaties, Conventions, etc., Between the United States of America and Other Powers, 1910–1923 (Washington, Government Printing Office, 1923), vol. iii, p. 3043.
44. Treaties, Conventions, etc., 1910–1923, vol. iii, pp. 3329, 3392. China did not sign the Treaty of Versailles, but for application of certain articles, see Agreements Between Germany and China Regarding the Restoration of the State of Peace, signed at Peking, May 20, 1921, League of Nations Treaty Series, vol. ix, p. 271.
45. Treaties, Conventions, etc., 1910–1923, vol. iii, pp. 3149, 3186.
46. For correspondence on the negotiations regarding extraterritoriality, see pp. 716 ff.