The Consul General at Shanghai ( Davis ) to the Secretary of State

1659. Following telegram received from Embassy Nanking:

“55 [555], August 30. Title deeds Foreign Office in reply of August 2430 to Embassy third person note May 27, 1946 and aide-mémoire of July [June] 331 has stated that the following two principles governing the issue of title deeds to foreigners in the various places in exchange for their deeds of perpetual lease were submitted to, and have been authorized by, the Executive Yuan. Where the land is under perpetual lease to a foreigner, the holder of the perpetual lease shall be the owner, but where land under perpetual lease has been transferred in whole or in part, the holder of [actual] rights shall be the owner; 2. if the government of a holder of perpetual lease has concluded a new treaty of equality with China in which it provided that title deeds shall be issued in exchange without the collection of any [Page 1329] fee whatsoever, then in accordance with the treaty no fee whatsoever shall be collected.

The Executive Yuan has instructed the Shanghai Municipal Government to issue the instructions necessary to effect compliance with the above stated principles. As regards these items of registration procedure proposed in the Embassy’s aide-mémoire, they are in large part included in the Shanghai Municipal Government’s procedure for the registration of foreigners tax deeds, and the Shanghai Municipal Government has carried on negotiations with the American, British, French Consulates General at Shanghai in this connection, the results of which, submitted to the Executive Yuan, are in process of decision.”

Suggest that after review this action you send such information to Dept as deemed necessary.

The Consulate General’s reply is being repeated to Dept by separate telegram.32

  1. Not printed.
  2. Neither printed.
  3. Infra.