893.102 Ku/20: Telegram

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

938. Reference Department’s number 385, December 1, 6 p.m., concerning status of Kuling Estate, paraphrase of which message was supplied to Consul General Adams26 at Hankow. Consul General has replied in part as follows:

According to American members of Kuling Council, decision to request opening of negotiations with Chinese authorities was unanimously arrived at by Kuling lot holders during their annual meeting in summer of this year and was based in part upon suggestion of British Consulate General that time appeared favorable for settlement of various problems confronting Council. Council members report there was no suggestion of opposition by lot holders including some Chinese lot holders. Chinese lot holders however have shown very lukewarm interest in conduct of affairs of the mediation.

2.
In reply to last paragraph of Department’s telegram of December 1, 6 p.m., Adams observes that Kuling lot holders have thus far been source of authority of Kuling Council which is elected to represent collective interest of lot holders and that action of the Council described above should estop any lot holder from criticising action of the Council if proposed negotiations prove unfortunate in their outcome; that Council’s desire to have negotiations open is based on the following considerations: Council now paying nearly one-third of its revenues to Chinese provisional police and receiving small returns for such outlay. Council believes a Chinese administration could handle policing problem much more efficiently, also the problem of coolie and motorcar transportation between Kuling and Kiukiang; that in time of tense and antiforeign feeling an administration with nominal Chinese head should lessen difficulties of the Kuling Estate and finally that land values at Kuling are rapidly resulting in steady increase in land holdings by wealthy Chinese with whom average purchaser cannot compete and that if negotiations are opened at this juncture when Chinese hold aproximately one-fourth lots the bargaining power of the Council is much better than it will be at later date.
3.
Consul General Adams believes that certain risk involved in opening of negotiations but that there will be no better time than present for undertaking regularization of affairs of the Estate; that the only body capable of representing lot holders has requested opening of negotiations and that he believes that we would be ill advised not to accede to such request.
4.
In view of the above the Legation if the Department approves contemplates inquiring of Adams if change in political situation since meeting of lot holders materially alters the relations [situation?] and if not Legation would interpose no objection to opening of negotiations provided the several consular authorities of the majority of the lot holders agree to such negotiations.27
Johnson
  1. Walter A. Adams.
  2. The Department, in its telegram No. 404, December 29, 1933, 3 p.m., replied: “You are authorized to instruct Hankow as proposed in paragraph 4 of your telegram.”