893.102S/1388

The Consul General at Shanghai (Gauss) to the Ambassador in China (Johnson)82

No. 169

Sir: I have the honor to inform you that, following the recent difficulty over the Municipal election in the International Settlement at Shanghai, when the Foreign Treaty Consuls set aside the ballot as invalid and ordered a new election, the German Consul General inquired of the Senior Consul why he had not been invited to attend the meeting of the Foreign Treaty Consuls which took the action indicated. The Senior Consul replied that he was following the precedent established for some years that matters affecting the International Settlement and the Land Regulations are dealt with by the extraterritorial Consuls. Thereupon the German Consul General asked that there should be put on the agenda of the next Consular Body meeting the question of an invitation to “all consular representatives [Page 686] at Shanghai to meetings of the Consular Body when matters of general interest are to be discussed.”

This move by the German Consul General arises out of some dissatisfaction felt in the German community that they are invited to support the substantial British-American control of the Settlement but have no representation in the consular group dealing with Settlement matters, and that notices on Municipal matters issued by the Foreign Treaty Consuls are published over the signatures of the extraterritorial Consuls, thus publicly emphasizing the non-participation of the German Consul General in consular deliberations.

The action of the German Consul General has, so far, become known only to the Senior Consul (Norwegian), the British Consul General, and myself. The British Consul General and I agree that it is desirable that, so far as possible, an international community of interests in respect of the International Settlement should be recognized and emphasized and that some means should be found of including the German Consul General, as the representative of a substantial German element in the community, in the deliberations of the Consuls on Settlement matters. At the same time, however, we recognize that if the German Consul General were to be accepted as a “Foreign Treaty Consul” under the Land Regulations, an embarrassing situation might arise later if the consular representatives of some other non-extraterritorial treaty power (such as Soviet Russia) fundamentally opposed to the present position of the other powers in China, should demand recognition in the consular meetings on Settlement affairs. There might also be involved in the situation a possible demand by non-career honorary Consuls of non-extraterritorial powers … to be consulted in Settlement matters in which they have no real interest.

As a result of a study of the matter, I have proposed informally to the Senior Consul and the British Consul General that we might seek a solution of the difficulty along the following lines:

(1)
That we continue to take the view that the Land Regulations, when referring to the “Foreign Treaty Consuls” and to the “Consuls of Foreign Powers having Treaties with China”, contemplate the exercise of the prescribed functions by the Consuls of the extraterritorial powers.
(2)
That, at the same time, we recognize a community of interest in Settlement affairs on the part of all foreign nationals, and that on that basis, the German community being substantial, we, the extraterritorial Consuls, might “invite” the German Consul General to “meet and consult” with us on Settlement matters.
(3)
That, in order to overcome that situation in which the German Consul General is so obviously excluded from “Foreign Treaty Consul” notices on Municipal affairs, the extraterritorial Consuls adopt the practice of not publishing such notices over their signatures but that, instead, they cause the Senior (extraterritorial) Consul to communicate to the Municipal Council texts of notices which the Council [Page 687] shall publish as “by direction of the Foreign Treaty Consuls”, all signatures being omitted from the published notices.

My colleagues, the Senior Consul and the British Consul General, have welcomed these suggestions as providing a happy solution of the difficulty. The Senior Consul will approach the German Consul General in the matter. It is believed that he will find the solution satisfactory. It will then be necessary to consult the Japanese and other extraterritorial Consuls.

I believe that the position that, under the Land Regulations, the extraterritorial Consuls alone have status in connection with Settlement matters, is technically correct. At the same time, it does not seem desirable that that situation be emphasized unduly, either in the foreign community or before the Chinese. The system of administration of the International Settlement at Shanghai is closely interwoven with the system of extraterritoriality, and is largely but not entirely dependent thereon.

Respectfully yours,

C. E. Gauss
  1. Copy transmitted to the Department by the Consul General at Shanghai in his despatch No. 180, May 6; received June 1.