893.5211/34: Telegram

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

129. Your 172 of March 27, 5 p.m.

1.
The Department notes that the proclamation referred to is apparently similar to a proclamation communicated in Hankow’s despatch to the Legation No. 631 of February 7, 1929.10
2.
The Department suggests that Hankow, in replying to inquiries that may be made by American holders of white deeds, might inform such holders: (a) that the general question of the validity of foreign land titles and of the payment of fees on land transactions is among the questions which are being given consideration in connection with the negotiations on extraterritoriality; (b) that while the Department is of course endeavoring to insure the recognition by the Chinese authorities of all legal and equitable property rights of American citizens in China, no assurance can be given as to the result of its negotiations on this subject and accordingly American holders of white deeds must rely on their own judgment in determining whether to apply for red deeds.
3.
In the case of future land transactions, riot involving the question of the fees on previous land transactions, the Department considers that American citizens seeking to acquire title to land would be well advised to obtain red deeds in all cases where the procedure is based on reasonable Chinese legislation.
4.
The Department would be glad to have your views, together with an indication of the attitude of your interested colleagues.
Carr
  1. Not printed.