893.102S/1260
The Consul General at Shanghai (Cunningham) to the Minister in China (Johnson)11
Sir: I have the honor to transmit a self-explanatory memorandum10 of a conversation which I had with Japanese Consul General Ishii [Page 653] in regard to the extra-Settlement roads agreement. It will be noted therefrom that Mr. Ishii states that the extra-Settlement roads memorandum, which he handed to me informally, is his own and if it is approved by the municipalities he will take it up with his government in the hope that it will receive the latter’s approval. These suggestions are to replace the rather absurd demands previously made and which were transmitted as enclosure No. 1 to this Consulate General’s despatch No. 7343 of October 14, 1932.12
It is probable that no action will be necessary in regard to this memorandum but it is believed it will be of interest to the Legation and the Department. The new demands are very much more reasonable than those previously made, and while there are a few points which need to be slightly modified, on the whole the memorandum would seem to justify the feeling that an agreement may be reached which will be acceptable to all parties concerned. The negotiations with the Chinese have all been conducted, on behalf of the Shanghai Municipal Council, by Mr. Stirling Fessenden and it is not my purpose to enter into the negotiations with the Japanese except at the suggestion of Mr. Fessenden, who is using his own channels of communication to effect an agreement with the Japanese. He keeps me informed concerning the various steps taken and from time to time has made suggestions which have guided me in conversations with various Japanese officials and civilians.
It is sincerely hoped there will be no difference of opinion arising between the British and Japanese due to the claim of either that the other has preponderant interests. It is learned from the Japanese Consul General that the British Consul General addressed him sometime ago stating that the British interests were dominant and they therefore would not yield to the previous demands of the Japanese in regard to the personnel of the extra-Settlement police force.
Respectfully yours,