793.003/989: Telegram

The Ambassador in the United Kingdom (Winant) to the Secretary of State

6204. I just received the following letter dated November 5 from Mr. Eden:

“With reference to the extraterritoriality question in China, our Ambassador at Chungking has called attention to the fact that the future rights of our nationals to acquire real property are not at present covered by the draft treaties.

Article IV of the American draft (article V of ours) safeguards only existing rights and titles. In so far as the rights granted by the provisions of the old treaties for the acquisition of land on perpetual lease in the treaty ports can be held to be not inconsistent with the present Treaty, article VII (article VIII of our draft) indirectly preserves this right. But neither of these provisions gives our nationals the right to acquire fial [real?] property throughout the country. Nor does the right to reside and carry on trade everywhere in China accorded in article V carry with it the right to ownership of real property, although this may have been the underlying intention of the United States Government.

I would observe that the Treaty concluded with China in 1928 by Italy62 has annexed to it a declaration by the Chinese Minister of Foreign Affairs as follows: ‘In the name of the National Government [Page 343] of the Republic of China, I have the honour to declare that, when Italian subjects cease to enjoy the privileges of Consular jurisdiction and other special privileges and when the relations between the two countries are on a footing of perfect equality the Chinese Government, in view of the fact that Chinese citizens, subject to the limitations prescribed in Italian laws and regulations, enjoy the right to live and trade and to acquire property in any part of the Italian territory, will grant the same rights to Italian subjects in China, subject to the limitations to be prescribed in its laws and regulations.’ A similar Declaration is annexed to the Belgian,63 Danish64 and Portuguese65 treaties of the same year.

This point is one of considerable importance to our respective interests in China and it appears to us most desirable that it should be covered on a reciprocal basis during the present negotiations. It would probably be convenient to deal with it in an annexed exchange of notes. It is not improbable that the Chinese Government will themselves have observations to make upon article V as it stands, and the discussion of these will give us the opportunity to press for this point to be covered.

I should greatly appreciate receiving the views of the United States Government on this question at their early convenience. I can, of course, give you further details of the exact technical position in the United Kingdom on this subject if desired.”

Mr. Eden has informed me that the British draft treaty was handed on October 30 to the Chinese Vice Minister for Foreign Affairs.

Winant
  1. Preliminary treaty of amity and commerce, signed at Nanking, November 27, 1928, League of Nations Treaty Series, vol. xciii, p. 175.
  2. Preliminary treaty of amity and commerce, signed at Nanking, November 22. 1928, League of Nations Treaty Series, vol. lxxxvii, p. 287.
  3. Preliminary treaty of amity and commerce, signed at Nanking, December 12. 1928, ibid., vol. xci, p. 207.
  4. Preliminary treaty of amity and commerce, signed at Nanking, December 19, 1928, ibid., vol. cvii, p. 93.