893.00/7988
The Minister in China (MacMurray) to the Secretary of State
[Received January 4, 1927.]
Sir: Supplementing the Legation’s despatches No. 780 of October 6, 192637 and No. 794 of October 27, 192637 relating to the navigation of American owned vessels on the Upper Yangtse, I have the honor to invite the attention of the Department to despatch No. 132 of October 22, 1926 from the Consulate at Chungking to the Legation, copies of which appear to have been transmitted to the Department;37 also to the Legation’s telegraphic reply of November 24 to this despatch, a copy of which is respectfully enclosed herewith.
A careful consideration of the conditions now existing along the Upper Yangtse as described in Mr. Adams’ reports has caused the Legation to feel that the cessation of navigation by American owned vessels for the time being would obviate the risk of the possible occurence at any time of incidents seriously detrimental to the relations between China and the United States and that such cessation would consequently tend to safeguard the general interests of Americans in China. The Legation has not, however, formed the opinion that it is as yet necessary to take steps looking toward a complete suspension of navigation. It appears that there is a considerable amount of American capital invested in shipping in this part of China which would be affected by such a course of action. Moreover, inasmuch as the operation of these vessels would appear, from a legal standpoint, not to differ from the conduct of any other kind of legitimate American business in China, there would not seem to be any legal authority whereby their operation could be terminated so long as the shipping companies concerned are carrying on business in accordance with the stipulations of the treaties between China and the United States. In its consideration of this matter, the Legation has reference, of course, to the conduct of enterprises in which there is a substantial American interest and not to those concerns from which protection might properly be withheld by reason of their failure to possess other than a slight or nominal American interest.
On the premises outlined above, the Legation assumes that American owned vessels of the character specified will, unless obstacles to [Page 652] a profitable operation become too formidable, continue to ply on the Upper Yangtse and that the American Consular and Naval officers in that part of China will continue to be faced with perplexing questions severely testing their intelligence and soundness of judgment. In this connection, the Legation desires to commend the ably reasoned report of the Commanding Officer of the U. S. S. Monocacy to the Commander of the Yangtse Patrol, dated October 1, 1926, a copy of which is attached to the despatch from the Consulate at Chungking of October 22, 1926, above mentioned.
In view of the chaotic conditions now prevalent on the Upper Yangtse, the Legation has come to the conclusion that, not only the employment of armed guards on American owned vessels, but also the unvarying use of naval force to prevent the transportation of Chinese soldiers and other unneutral services, may at any time be the cause of incidents of a character prejudicial to the good relations between China and the United States. In using the expression “unvarying use of naval force”, the Legation has in mind a policy by which American naval vessels are, whenever necessary, to use force to prevent unneutral services regardless whether such action may bring on possibly serious conflict with Chinese military or naval forces. The Legation sees no reason why American vessels should not, as discretion may dictate, endeavor to prevent unneutral services when such action may be taken without the likelihood of involving serious results. As indicated in its telegram of November 24 to Mr. Adams, the Legation agrees with the Consul’s view that the only practicable method of protecting the American flag on the Upper Yangtse under existing conditions is the temporary suspension of sailings during disturbed periods. This recommendation would not be made if it seemed possible under present circumstances to afford adequate naval protection to American owned vessels in the exercise of their treaty rights. But the lesson of the Wanhsien incident of September 5 last is that naval vessels of a type capable of navigating the Yangtse Rapids, and under the tactical disadvantage of the conditions of navigation in a comparatively narrow channel with a swift current, are not a match for shore batteries; and it is thus a physical impossibility for them to afford adequate protection to shipping against Chinese forces in the event that the latter are in a mood of recklessness as to possible ulterior developments. It appears that, subsequently to the Wanhsien incident, the American naval authorities brought about the suspension of sailings from Ichang by reason of the fact that the Commissioner of Customs at that port, upon request, was willing to withhold clearances of the American owned vessels; also that on one occasion the Commissioner of Customs at Chungking withheld the clearance of a vessel at the instance of the American Consul. The Department will note the [Page 653] tentative expression of opinion on the part of the Legation in its telegram to Mr. Adams, that, except in some outstanding emergency demanding that ordinary considerations be set aside, a Consul would be exceeding the scope of his authority in attempting to regulate sailings through bringing pressure to bear upon a Commissioner of Customs for the purpose of inducing him to withhold clearances to American owned vessels during periods when the Consul deemed it inadvisable for such vessels to operate. The Legation would be glad to receive an expression of the Department’s opinion with respect to the question of the responsibility of the Consul, should he make such a request, and also with respect to the propriety and advisability of his so doing in the event that there should appear to be no legal obstacle to that course of action.
With reference to the question raised by Mr. Adams whether he should attempt to control sailings in emergencies by warning the American steamship companies in his district that the operation of their vessels would result in the withdrawal of Consular protection so far as concerns events arising out of such disapproved action, the Department will note that the Legation has substantially authorized Mr. Adams to adopt that course, if necessary, in dealing with the American steamship companies concerned, at the same time safeguarding himself from any commitment with respect to his attitude in matters which, by reason of their contingent character, belong in the category of hypothetical cases. Should the Department feel that the Legation has given Mr. Adams an undue degree of latitude in this particular, or that such action might fairly be open to criticism as an attempt to exert an unwarranted degree of control over the rights of individuals in the conduct of their private business, it is requested that the Legation be promptly advised by telegraph. The Legation has been led to authorize the Consul at Chungking to take the action indicated only by reason of the very precarious nature of the situation on the Upper Yangtse, and by the feeling that every rightful effort should be made to forestall, if possible, the repetition of any such incident as the unfortunate conflict at Wanhsien on September 5 last between the British naval and Chinese military forces.
Should the American shipping companies concerned be unwilling to co-operate in a policy dictated by a consideration for the general welfare of American interests in China, or should conditions on the Upper Yangtse reach a state in which apparently any operation whatsoever of American owned shipping would be hazardous to American interests, it would of course be necessary for the Legation to consider further what measures may be taken to meet the situation. It is hoped, however, that the negotiations between the Chinese and British authorities with regard to the settlement of the Wanhsien [Page 654] incident may serve to protect all foreign owned shipping on the Upper Yangtse from the enforced performance of unneutral services. The Legation would welcome a full expression of the Department’s views with respect to the various phases of the urgent problem presented by the situation now existing with respect to American owned shipping on the Upper Yangtse.
I have [etc.]