793.94/1245

The Minister in China (Schurman) to the Secretary of State

No. 155

Sir:

. . . . . . . . . . . . . .

It will be remembered that the Japanese Government requested the Chinese Government, in a memorandum dated September 7, 1921,65 to open direct negotiations regarding Shantung. The Chinese Government replied to the abovementioned Japanese memorandum on October 5, 1921,66 and stated clearly China’s position in the matter as well as emphasizing the differences of opinion between the two countries. The second Japanese memorandum dated October 15, 1921, in reply to the Chinese memorandum of October 5, 1921, was handed to the Chinese Minister for Foreign Affairs by the Japanese Minister at Peking on October 19, 1921.67 This memorandum, [Page 632] after discussing the various points of difference between the two countries, closes by expressing the willingness of the Japanese Government to enter into further negotiations in the premises.

The second Chinese memorandum, dated November 3, 1921, (a copy of which is enclosed herewith as a newspaper clipping from the Peking, and Tientsin Times of November 5th) replies to Japan’s second memorandum of October 15th and refutes the various arguments of the Japanese Government as set forth therein.

It will be noted that the exchange of notes between the two governments has at least set forth the points of contention between the two countries, that while the chances of a satisfactory settlement of the question by direct negotiations between China and Japan seem at present remote, still these memoranda form a basis for further negotiations and may prove helpful to the Chinese and Japanese delegates at Washington provided the Shantung question is brought up at the Pacific Conference.

I have [etc.]

Jacob Gould Schurman
[Enclosure]

The Chinese Minister for Foreign Affairs (W. W. Yen) to the Japanese Minister in China (Obata)

On October 19, the Japanese Government again presented to the Chinese Government a Memorandum relative to the Shantung question. After careful consideration, the Chinese Government feels that the Japanese Government not only differs fundamentally from the views of the Chinese Government as expressed in its Memorandum of October 5, but also shows apparently much misunderstanding in her interpretation of the text thereof. The Chinese Government therefore deems it highly necessary to make a further declaration concerning the past facts and its unchanged point of view from first to last.

The Shantung question concerns the vital interests of China. The Chinese Government is very earnest in its sincere endeavours to find an early solution of the question, even very much more so than Japan. It is only due to the fact that the bases of settlement proposed by the Japanese Government are altogether too far apart from the hopes and expectations of the Chinese Government and people that they can but calmly and patiently wait for an opportunity to come when Japan may reconsider her position. As to the statement embodied in the Japanese Memorandum under consideration to the effect that on the eve of Minister Obata’s departure for Japan, in May last this year, Foreign Minister Yen formally expressed to him his desire to see a concrete project presented by [Page 633] the Japanese Government couched in Just and satisfactory terms such as would simultaneously be deemed fair by all the nations, it is to be observed that when leaving for Japan Minister Obata inquired of Dr. Yen as to his personal views on the Shantung question. It is evident, therefore, that Dr. Yen’s answer to his inquirer is purely personal and is not, as it is alleged, a formal statement by the Chinese Minister of Foreign Affairs. Again, it is alleged in the Japanese Memorandum under consideration that the Chinese Government Authorities have confidentially presented to the Japanese Government a certain project for the settlement of the question and that they also unofficially expressed their readiness to open negotiations with the Japanese Government. As to these allegations, it is highly probable that they must have arisen out of misunderstandings caused by the roundabout repetition of personal conversations between General Banzai and Councillor Yu of the Ministry of War. It would seem to be wanting in discretion, if these private conversations between individuals were to be referred to as grounds for the presentation of the Japanese proposals. As to the Memorandum handed by China to the Japanese Minister on October 5, it enumerates and points out the difference of views between China and Japan, both regarding the principles underlying the proposals of Japan and regarding the contents of the terms thereof. If Japan had a true understanding of them, she would certainly have proposed a project, more substantial and just, one that would be generally recognized as fair by all sides. It is, however, highly regrettable that Japan has not given any sign of concession, while, on the contrary she maintains that China has openly indicated her unwillingness to proceed with the negotiations in question.

It is to be observed that the reason why the representatives of China have not been able to sign the Versailles Treaty is simply because of the few articles therein relative to the Shantung question. Since China has not signed the Versailles Treaty, it is impossible to oblige China to accord recognition to the effects arising from the said Treaty regarding the Shantung question. Therefore, while Japan considers that the leasehold of Kiaochao has been transferred to her through the operation of the Versailles Treaty, China, on the other hand, deems that it has expired through her declaration of war against Germany. This difference of viewpoint, if insisted upon by both Countries, will forever deprive this question of a solution. Since Japan is willing to restore Kiaochao completely to China, there is no more necessity for her to insist on the aforesaid point of dispute. As to the criticism directed to the declaration made by the German Representatives to China, it is to be observed that at the time when they came to negotiate the commercial Agreement with [Page 634] China, China still insisted on her demand for the restoration of Kiaochao. But, owing to the conditions of the war and the Treaty restraint, Germany lost by force majeure, her power of returning Kiaochao to China, for which she expressed her regret to the Chinese Government. To this, it must be also noted, the Chinese Government has only declared its acknowledgement of Germany’s explanation as such and no more. Indeed, it is a serious misunderstanding on the part of Japan to construe this incident to mean China’s recognition of the Versailles Treaty.

Again, it is to be observed that the Kiaochao-Tsinan Railway, built within Chinese territory, was primarily an undertaking of the nature of a corporation and Chinese capital was also invested in it. It was not the public property of Germany. Nor was it private property exclusively belonging to Germans. Although it was temporarily operated by the Germans, China has long been looking forward to an opportune moment for its reclamation. Furthermore, the right of policing the Railway belonged exclusively to China. There was absolutely no military necessity, justifying the occupation of the Railway by Japan. During that time, China repeatedly protested to Japan that there was really no justification for the occupation of the Railway by the Japanese Army. Furthermore, there were then no German troops stationed along the line of the Railway except that part lying within the Leased Territory. At the time of the occupation of the Railway, Japan encountered no resistance whatever, and she can have no ground to claim for any sacrifice of lives and treasure suffered on account of the Railway. Later when China joined the belligerent nations on the side of the Allies, it was only proper that all railways within the territorial bounds of China should be returned to her own control. However, the Japanese troops have remained, refused to withdraw and caused innumerable and endless losses and damages to the Chinese people along the line of the Railway. This the Chinese Delegates had not hesitated to declare repeatedly in the Peace Conference at Paris.

The Chinese Memorandum of October 5 proposes to reclaim the right of control over the Railway and to divide its entire capital and property into two halves, and that as to the half obtained by Japan, it is to be redeemed by China in successive periods. This arrangement, in the opinion of the Chinese Government, is very fair and just, and it is to its great regret that Japan has referred to it as a proposal devoid of meaning. It is to be inferred that in the opinion of the Japanese Government the capital and property of the Railway have been adjudged by the Reparations Commission to offset German indemnities. However, it must not be overlooked that China has not signed the Versailles Treaty. Consequently, how [Page 635] can the Reparations Commission have any right and authority to make disposition of property within Chinese territory to satisfy the indemnity obligations of Germany? Furthermore, owing to China’s participation in the War on the Allies’ side, Germany has also a certain amount of indemnity to pay to China. If the Kiaochao-Tsinan Railway is to be used as an article in [to] satisfy indemnity obligations, China, it is more than evident, should be reimbursed first.

Again, with reference to the disposition of public properties belonging to Germany, as long as the Japanese Government has no intention of holding the various kinds of properties, it is only right that they should be handed over to China for proper administration. Indeed, in the interests of the nationals of foreign countries, the Chinese Government is most desirous of deciding upon a just and fair settlement, but so far the Japanese Government has not presented to China its avowed concrete and fair project. It is therefore impossible for the Chinese Government to define its attitude either one way or the other.

In a word, the views of the Chinese Government have already in general appeared in its Memorandum of October 5. Owing to the fact that in her second Memorandum, Japan has not yet understood China’s views and further that with reference to the railways, her proposals are more difficult to accept than as stated in the first Memorandum, leading perhaps in a direction contrary to that of an early solution of the question, the Chinese Government does not hesitate, therefore, in taking pains again to make a further declaration and deeply hopes for the sake of the everlasting peace of the Far East and in the interests of true Sino-Japanese friendship, the Japanese Government will again give its fullest consideration to the question.

Further, with reference to the Japanese troops in Shantung province, the Japanese Government has long promised to withdraw them in advance, and their evacuation at an early date, it is to be recalled, was also urged by China in her last memorandum. However, up to the present, the actual evacuation has not yet been begun as promised and requested. It is therefore the earnest hope of the Chinese Government that the Japanese troops in question be recalled at an early date, while the responsibility of policing the Railway will, as a matter of course, be assumed by China’s own police force.

[Documents relating to negotiations during the Washington Conference on the Limitation of Armament, November 12, 1921–February 6, 1922, will appear in a later volume of Foreign Relations.]

  1. See note from the Japanese Ambassador, p. 617.
  2. See note from the Chinese Minister, p. 622.
  3. Ante, p. 625.