In accordance with the statement made in the last paragraph of this telegram,
I am forwarding to you herewith the following documents:15 (1) Memorandum
of Conversation concerning Consular Title Deeds in Shanghai; (2) Copy of
form for new “Deed of Ownership” together with translation; (3) Copy of Form
for “Certificate of Other Rights.”
R. T. Bryan, Jr. will prepare and forward to you a memorandum on the legal
aspects of this matter when he arrives in Chungking.
[Enclosure]
Memorandum of Conversation, by Mr. Robert T. Bryan, Jr., Special Assistant
to the Embassy in China
[Shanghai,] January 28, 1946.
At 11 a.m. on January 28, 1946 Paul R. Josselyn and R. T. Bryan, Jr.
called by appointment on T. K. Ho, Deputy Mayor of Shanghai to discuss
the re-registration of consular title deeds or perpetual leases as more
fully specified in Article IV of the new Sino-American Treaty.
Article IV of the treaty was called to the Deputy Mayor’s attention. For
ready reference, Article IV is quoted hereunder:
[Here follows text of article IV.]
It was pointed out that according to Anglo-Saxon law the legal title
remained in the trustee, in this case the registered owner, not in the
beneficial owner. Chinese law, however, made the trustee only the agent
of the beneficial owner. The United States Government was interested in
registered owners who were also beneficial owners; it was not interested
in registered owners who were only the trustees of the beneficial
owners.
A copy of a “Certificate of Other Rights” was shown to the Deputy Mayor,
and he was informed that this was not a deed of ownership within the
purview of the words “by new deeds of ownership”. The words “other
rights” clearly indicated that the document was not a deed of ownership.
If such a document was given to the holders of Consular Title Deeds, it
would cause the property to immediately decline in value. For ready
reference a copy of the “Certificate of Other Rights” together with a
translation is attached.
A copy of the proposed new “Deed of Ownership” was then shown to the
Deputy Mayor who was informed that this was the deed of ownership which
should be issued by the Chinese Government to Americans in exchange for
their Consular Title Deeds. The Deputy Mayor then explained that this
new deed was to be issued to property owners in exchange for the old Tu Di Tswng. It was suggested to the Deputy Mayor
that there should be no discrimination between Chinese owners and
holders of Consular Title Deeds. The same type of deed should be issued
to both Chinese and Americans. For ready reference, a copy of the new
“Deed of Ownership”, together with a translation is attached.
It was stated that the Chinese Land Law would have to be amended in order
to permit the issuance of “Deeds of Ownership” to Americans. This might
cause some delay.
It was suggested that this matter could be satisfactorily settled in one
of three ways: first, new deeds of ownership could be issued to
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Americans in exchange for
their Consular Title Deeds; or second, Consular Title Deeds could be
validated by making a note on them to that effect; or third, an order
could be issued validating all Consular Title Deeds. It was explained
that the first method was cumbersome and that either the second or third
methods would be satisfactory to all parties concerned.
It was called to the Deputy Mayor’s attention that the treaty said
nothing concerning a time limit within which Consular Title Deeds should
be exchanged for new documents. The time limit had already been extended
to March 18, 1946, but even this extension granted entirely too short a
period within which to enable the holders of Consular Title Deeds to
exchange them for new documents. It was claimed that the minimum period
allowed for the exchange should be at least five years.
The Deputy Mayor agreed that, in accordance with the terms of the treaty,
no fees should be charged. He further agreed, in principle, with the
suggestions made by Messrs. Josselyn and Bryan as above stated. Finally
he pointed out that Americans should not worry about the time limit but
should wait until the whole matter was settled. He felt that this was a
question which could be settled satisfactorily by cooperation between
the United States and China.
The conference then ended at 11:45 having been conducted all the way
through in a spirit of friendship and amity.
