The Ambassador in China ( Stuart ) to the Secretary of State

No. 999

Subject: Liquidation Commission of the Former International Settlement at Shanghai: Country Hospital, Shanghai General Hospital and Victoria Nurses Home.

Sir: I have the honor to refer to Shanghai’s despatch to the Embassy, No. 296 of September 8, 1947, on the above subject (copy and hectograph sent to Department), with which was enclosed a copy of a letter from Dr. George Sellett, American Adviser to the Liquidation Commission for the International Settlement at Shanghai, which outlined an agreement informally proposed by the Chinese for the disposal of the three above-mentioned hospitals.

The Embassy is of the opinion that, in view of the situation which obtains at Shanghai in regard to the entire liquidation question, the proposed Chinese plan probably represents the best solution that can be obtained by agreement between the Chinese on the one hand and [Page 1419] the concerned foreign authorities on the other. In these circumstances, therefore, the Embassy recommends that the Consulate General at Shanghai be authorized to agree to the proposed plan, namely, that the Chinese authorities will relinquish all claims to the Country Hospital; that the Shanghai General Hospital will be operated in the future under a revised trust deed whereby the foreign community will be represented on the Board of Governors; and, that one or two floors of the Victoria Nurses Home will be set aside for the residence of nurses of the Country Hospital. It is assumed, of course, that the American authorities at Shanghai will take advantage of any opportunity that is offered to better the above terms.

The British Embassy states that the above plan has not formally come to its attention as yet, but that it has already given informal consideration to the plan and will probably recommend its acceptance as the most satisfactory one that can be obtained under the circumstances. The British Embassy officer concerned with this matter stated that he had verbally suggested to the Shanghai British authorities that every safeguard possible be taken to ensure fulfillment by the Chinese of their undertaking under this plan if it should be agreed upon.

Respectfully yours,

For the Ambassador:
William T. Turner

First Secretary of Embassy