493.11/1902

Memorandum of Conversation, by the Counselor of Legation in China (Peck)12

  • [Present:]
    • His Excellency Dr. Wang Ching-wei, President of the Executive Yuan and Concurrently Acting Minister for Foreign Affairs.
    • Honorable Nelson Trusler Johnson, American Minister.
    • Dr. Tan Shao-hwa, of the Foreign Office, interpreter.
    • Mr. Peck.

Mr. Johnson told Dr. Wang that he should like to have the latest decision of the Chinese Government in regard to the proposal made [Page 559] by the Department of State some time ago in regard to the creation of a Claims Commission, in order that he, Mr. Johnson, might be able to reply to the inquiries which would certainly be made of him immediately on his arrival in Washington.

Dr. Wang’s reply added very little to the numerous statements hitherto made by the Chinese Government which have been reported to the Department. He said, for example, that the Chinese Government believed that American claims against the Chinese Government could be segregated into two classes, that is, claims concerning which there could be little doubt as to their propriety and claims concerning which there was ground for doubt. He said that in regard to the first class the Chinese Government would be glad to make arrangements for settlement and in regard to the second, it would probably be possible for the Chinese Government to agree upon some method of adjustment, possibly along the lines suggested by the American Government.

Dr. Wang said that the Ministry of Foreign Affairs had been conducting investigations into the various claims enumerated in the list supplied by the American Legation. It had encountered considerable difficulty, however, in ascertaining the facts regarding great numbers of these claims, either because they were extremely old (some of them dating from before the Revolution) and some of them relating to incidents in outlying provinces. In connection with the last category, the Ministry of Foreign Affairs had addressed inquiries to the provincial authorities concerned, but had not yet received replies.

Dr. Wang alluded, also, to the international complications with which China would be at once confronted if it should begin actively adjusting its obligations to American citizens. He said the Chinese Government would much prefer to take uniform and simultaneous steps to settle all of its foreign obligations.

Mr. Johnson made no special demur to the arguments advanced by Dr. Wang, but urged very strongly that the suggestion made by the Department of State, or something similar to it, be carried out by the Chinese Government. He said that the American Government did not insist upon any particular mode of settling these financial matters, nor was it pressing for immediate payment of outstanding accounts, but the Department felt very strongly that international relations between the United States and China would be greatly improved if these problems could be submitted to some form of impartial and equitable settlement, and thus be eliminated from the ordinary course of diplomatic intercourse. He pointed out that the tribunal suggested by the Department of State had been modeled upon other similar tribunals set up by the United States with other countries and that it was designed to be both simple in action and inexpensive, as well as scrupulously impartial as between the two countries. He [Page 560] said that he was not prepared to discuss the merits of the various outstanding claims: he knew they were of all degrees of merit, although the American Legation had endeavored to eliminate claims which appeared to have no basis whatsoever. The important thing was, he urged, that some step be taken to provide for a decision in regard to these claims before evidence and witnesses had completely disappeared.

It seemed clear from the tone of Dr. Wang’s remarks that the Chinese Government is no nearer accepting in toto the proposal for the creation of a Claims Commission than it was at the time that the Executive Yuan adopted a resolution providing for immediate acknowledgment of obligations concerning which there is no doubt and for the settlement of doubtful claims in accordance with the suggestion made by the American Government (see telegram from the Nanking office of the Legation to the Legation at Peiping April 23, 4 p.m., 193414).

  1. Copy transmitted to the Department by the Chargé in China in his despatch No. 3032, October 12; received November 3.
  2. See telegram No. 192, April 24, 3 p.m., from the Minister in China, p. 553.