893.102S/1711: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received September 28—3:48 p.m.]
633. 1. My British colleague informs me that in his last conversation with the Minister for Foreign Affairs a few days ago the latter said that the Japanese Government is prepared to restore the northern Settlement area in Shanghai (Hongkew and Yangtzepoo) to the authority of the Municipal Council subject to the following conditions:20
- (a)
- Better cooperation by the British and other municipal authorities with the Japanese authorities in maintenance of law and order (in particular transfer of the District Court to the de facto authorities), and
- (b)
- British help in realization of Japan’s proposals in regard to the reorganization of the Municipal Council’s police force.
2. Craigie has communicated this proposal to his Government with a strong recommendation for acceptance. He feels that the large number of Japanese residents in the northern Settlement area justifies the Japanese conditions and believes that with regard to the transfer of the District Court some reasonable compromise might be worked [Page 306] out insuring the appointment of judges not affiliated either with Chiang Kai Shek or with the Renovation Government, He has told his Government that time is of the essence in forestalling Japan’s complete tie up with Germany and believes that to carry out this proposed compromise in Shanghai would have a very favorable effect. He believes that the proposal could be worked out without sacrificing any matter of principle and certainly without involving any recognition of the Renovation Government.
3. Craigie asks me to regard the foregoing as strictly confidential and not to repeat this telegram to Shanghai because any risk of publicity at present is to be avoided. The British Ambassador in Shanghai21 feels that the Japanese proposal should be refused but Craigie believes that Clark Kerr does not appreciate the larger issues involved. No reply has yet come from London to Craigie’s recommendation.
4. I refrained from expressing an opinion as to the merits of the Japanese proposal but said that I would pass it on to Washington in strict confidence.
- See telegram No. 1300, October 6, 9 a.m., from the Consul General at Shanghai, vol. iv, p. 138.↩
- Sir Archibald Clark Kerr.↩