893.102 Ku/18: Telegram

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

385. Your despatch No. 2338, October 21,24 penultimate paragraph. If all or a decided majority of the lot owners should desire to submit to the Chinese authorities the question of altering the status of the Ruling Estate, the Department does not wish to interpose any objection to such action. In view, however, of the somewhat uncertain status of the administration of the area mentioned, the Department questions whether the decision of the Ruling Council may safely be taken as representing the interests of the majority of the lot owners and whether objection to the proposed negotiations by a considerable minority of the lot owners would not be effective toward preventing the proposed negotiations.

In view of the large number of American lot owners25 and the danger that the submission of the question to the Chinese authorities might result not only in the refusal of those authorities to acquiesce in a number of the proposals but also in undesirable controversy and possible impairment of the present status of the rights of the American citizens concerned, the Department believes that serious consideration should be given to the question whether it is desirable to raise at this time the issues involved in the proposal under reference.

Phillips
  1. Not printed.
  2. An enclosure to despatch No. 2338, October 21, gave the number of American residents as 974, holding 247 lots and 217 homes.