893.102 Tientsin/465: Telegram
The Chargé in the United Kingdom (Johnson) to the Secretary of State
[Received August 17—4:50 p.m.]
1182. My 1178, August 17, 4 p.m.20 The Prime Minister approved today a draft note to be presented to the Japanese Government by Ambassador Craigie regarding the Chinese currency and silver demands of the Japanese. This communication is to be telegraphed to Tokyo tonight. The substance of the note is as follows: [Page 234]
After the initiation of the Anglo-Japanese negotiations at Tokyo it became apparent to the British Government that their scope exceeded what might be called a local Tientsin issue and that Japanese demands related to economic and financial features of the present situation in North China on which not only the British Government but certain other governments have expressed to Japan their views. Nevertheless the British Government in a desire to meet the Japanese point of view had had under close consideration what could be done to this end. As a result of its preliminary soundings the British Government found in the question of currency and silver, apart from the natural Chinese interest in the matter, other foreign interests concerned to an extent which renders agreement as between Great Britain and Japan alone impossible. The British Government cannot therefore by itself put forward or accept any proposals prejudicial to the interests of third parties. It therefore feels that no discussion on these economic issues on a purely Anglo-Japanese basis is likely to lead to any useful result. Should the Japanese Government, however, wish to proceed further on these matters, the British Government would be willing to examine the questions afresh provided that arrangements can be made by which the interests of all parties would be safeguarded. For this reason the British Government would be obliged to consult with and have regard to the views of third parties. The British Government does not wish the Japanese Government to suppose from this indication of its attitude that the British Government wishes to shelve questions which the Japanese Government has raised. The British Government indeed fully realizes that in any ultimate settlement of the present dispute in China these matters will have to be fully discussed in relation to conditions existing throughout China. The British Government does not contend that treaties are eternal and would be prepared to consider any constructive suggestion brought forward by the Japanese Government for modifying existing agreements. It is essential, however, that all parties to the Nine Power21 and other treaties which govern the situation in China be consulted.
The note concludes by expressing satisfaction that the Tokyo negotiations have witnessed a certain progress toward agreement in regard to police and other local matters and expresses the hope that the Japanese Government will not allow the inability of the British Government to admit its views regarding the currency and silver questions to thwart agreement on the local issues which Great Britain is prepared to conclude now, subject to the adjustment of points of detail and in return for the cessation of anti-British agitation in China and the raising of the blockade against Tientsin.
The Foreign Office believes that it might be possible, although extremely difficult, to meet the Japanese views in some degree regarding the silver, perhaps through sterilizing this bullion, although they are not yet clear how it could be done. The Government, however, considers that any bilateral agreement between Great Britain and [Page 235] Japan on the subject of Chinese currency is impossible. Foreign Office officials, including the Under Secretary, express no optimism that the Japanese will accept the terms of this communication and evidently they foresee the possibility of a complete breakdown in the Tokyo negotiations.
- Vol. iii, p. 570.↩
- Signed at Washington, February 6, 1922, Foreign Relations, 1922, vol. i, p. 276.↩