893.5211/32

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

No. 814

Sir: I have the honor to enclose, for the consideration of the Department, copy of despatch No. 6776 of January 28, 1931, from the American Consul General at Shanghai to the Legation2 concerning the protection, in the event of the relinquishment of extraterritorial jurisdiction,3 of the rights of American citizens in respect to land tenure in China.

The Department’s attention is particularly invited to the penultimate paragraph of Consul General Jenkins’ letter which states in part:

“… the High Court of Kiangsu handed down a decision on December 30, 1930, confirming the judgment of the Shanghai Special District Court to the effect that foreigners are not authorized under the treaties to hold land outside of the treaty ports—in this, instance the Shanghai International Settlement. This decision seems to indicate that the Chinese authorities are tending to exclude Americans and other foreigners (except possibly missionaries) from holding perpetual leases on land outside the definitely prescribed limits of treaty ports and foreign settlement areas.”

Such court decisions cannot but lead to the fear that there will be endless complications in the future unless, in any agreement regarding the relinquishment of extraterritorial jurisdiction, definite provision is made to safeguard the existing property rights of bona fide American non-missionary lessees who hold duly stamped leases-in-perpetuity for property located in treaty ports which have never been clearly delimited by the Chinese authorities, or for property in treaty ports, such as Shanghai, the limits of which have been at least tacitly recognized by the Chinese authorities, who, liberally interpreting treaty provisions, have in times past stamped deeds for property [Page 1029] leased in perpetuity by American merchants and other non-missionary lessees in areas adjacent to but technically outside of the limits of the treaty ports in question.

Respectfully yours,

Nelson Trusler Johnson
  1. Not printed.
  2. For negotiations, see pp. 716 ff.