893.825/67: Telegram

The Chargé in China (Gauss) to the Secretary of State

588. Reference Department’s 298, September 19 [18], 8 p.m., concerning pilotage regulations.

1.
Informed negotiations principally by the British with the officiating Inspector General of Customs have resulted in that official [Page 605] agreeing to recommend to the National Government revised pilotage regulations embodying amendments which had been sought by principally interested powers other than Japan and France.
2.
[Here follows report on amendments to the pilotage regulations.]
3.
British Minister obtained the authorization of his Foreign Office, and, after informing this Legation of his contemplated action and requesting that we act similarly, he has recently supplied Chinese Foreign Office informally with a draft of the regulations in their amended form as set forth above and informed Hsu Mo, Vice Minister for Foreign Affairs, that the British Government is prepared to accept them as applicable to British nationals provided they are communicated to the British Minister officially for approval together with assurances (1) that in future the number of British pilots in relation to the total number of foreign pilots should be determined by the proportion pilotage fees paid by British shipping bears to those paid by other foreign shipping, (2) that the regulations will not be enforced until the Chinese have made an effort to obtain their acceptance by other interested powers, and that present pilots’ licenses will be renewed for a reasonable period to permit obtaining such acceptance; (I am informed that this last assurance is desired because the Japanese have expressed the belief that they can arrive at agreements with Chinese within a few months and requested British not to act precipitately[)] and (3) that a satisfactory arrangement be reached for taking over Shanghai Pilots’ Association and pilots’ boat company. (Informal negotiations have been going on to this end and the officiating Inspector General has agreed to recommend to the Chinese Government the taking over of these interests and equipment on terms extremely favorable to the pilots). British propose informally accepting the regulations to make an appropriate reservation of treaty rights concerning penalties and compulsory pilotage.
4.
While Hsu Mo is reported not to have committed himself there is every indication that amended regulations will be acceptable to Chinese. French and Japanese are understood still to desire solemn formal agreement upon revision and mandatory provisions requiring employment of foreign pilots, Japanese demanding that there shall be no diminution in number of Japanese pilots.
5.
Notwithstanding Japanese and French attitude, the British Legation has expressed the willingness to go ahead in this matter and accept the amended regulations with the assurances referred to above and hope that we will do likewise. They feel that such action on the part of the American and British authorities will bring the other interested nations into line and possibly also, in view of the favorable terms offered to pilots at Shanghai, may induce the French if not also the [Page 606] Japanese to accept the regulations. British intimate that they are greatly concerned that failure to reach an early agreement may adversely affect interests of Shanghai British pilots and the pilot company both of which are now being offered extremely favorable terms.
6.
In view of the above, and as the regulations would with certain reservations and assurances appear to provide adequate safeguards for the American interests involved, the Legation recommends that it be authorized to instruct the Counselor at Nanking to call upon an appropriate official of the Foreign Office and, leaving with him a copy of the amended regulations, inform him that we are prepared to accept them as applicable to American nationals provided they are communicated to us officially for approval under cover of a note containing assurances (1) that all American pilots at present employed whether at Shanghai or elsewhere (there are three on the Woosung-Hankow run and one at Swatow) will have the option of continuing in service, and that satisfactory arrangements will be made for taking over their boats and equipment and that in future the number of American pilots in relation to the total number of foreign pilots shall be determined by the proportion pilotage fees paid by American shipping bears to those paid by the shipping of other foreign powers, (2) that the regulations will not be enforced until an effort has been made to obtain their acceptance by the other interested powers, and (3) that should the pilots or shipping of any other nationality be licensed or permitted to operate under terms more favorable than those embodied in the amended regulations, then American pilots and shipping will be entitled to equal treatment. Peck might also leave with the Foreign Office an aide-mémoire embodying these stipulations, and I believe that he should say frankly to the Foreign Office that in accepting these regulations the Legation will make an appropriate reservation of treaty rights regarding jurisdiction over American nationals and refusing to recognize any right of the Chinese to enforce compulsory pilotage without the consent of the American Government.
Gauss
  1. Telegram in four sections.