793.003/238

The British Ambassador (Howard) to the Secretary of State

No. 667

Sir: I have the honour to transmit herewith under instructions from His Majesty’s Principal Secretary of State for Foreign Affairs, [Page 658] copy of an aide-memoire handed by Mr. Henderson on the 20th instant to the Chinese Minister in London regarding the abolition of extraterritoriality in China.

2.
The object of His Majesty’s Government in taking this step is to induce the Chinese Government to issue their threatened denunciation of extraterritoriality in an innocuous form.
3.
The Chinese Minister in London on November 25th announced to the Deputy Under Secretary of State that his Government had decided (1) to decree the abolition of extraterritoriality on January 1st, next, (2) to establish modern courts at Harbin, Shanghai, Canton, Tientsin and Hankow, to which would be attached foreign legal advisers for purpose of consultation, but without right of interference, (3) to allow civil cases between foreigners to be tried by courts outside China, the judgment of such courts to be executed by a Chinese Court, if not repugnant to Chinese law and custom.

I have [etc.]

Esme Howard
[Enclosure]

Aide-Mémoire

His Majesty’s Government in the United Kingdom have had under consideration the position which has arisen in consequence of the note addressed to them by the Chinese Government on April 27th last and subsequent correspondence on the subject of proposed modifications in the present system of extraterritoriality in China. His Majesty’s Government are aware of official declarations on the part of the Chinese Government which they interpret as indicating the earnest desire of the Chinese Government that substantial progress should be made before January 1st, 1930, if not with the actual process of abolition of extraterritoriality, at any rate with serious negotiations having in view the initiation of that process in the immediate future.

2.
His Majesty’s Government, animated by a desire to meet the wishes of the Chinese Government in a liberal and sympathetic spirit, sought to elicit from them concrete proposals which might serve as a basis for detailed negotiations. When it became apparent that the Chinese Government felt some difficulty in putting forward concrete proposals for preliminary study, His Majesty’s Government hoped that the common purpose which both Governments had in view might best be served if discussions could be initiated before the end of the year between His Majesty’s Minister at Peking and the Chinese Minister for Foreign Affairs in Nanking. It was their intention that Sir M. Lampson should proceed to Nanking for the purpose, but unfortunately the outbreak of civil war over a wide area in China made it impossible to carry that intention into effect.
3.
The intricate readjustments that will be necessary both in the legal and administrative spheres in a gradual and progressive solution of the problem of extraterritoriality, such as is contemplated by both Governments, can only be effected as the result of negotiations conducted in a friendly and unprejudiced atmosphere. It would be a grave misfortune were anything to occur to prevent such negotiations from being initiated or from being carried to a satisfactory conclusion. The Chinese Government themselves will realise that any attack on the legal rights of British subjects or the interests which they have built up with benefit to China as well as themselves in the course of nearly one hundred years on the faith of solemn treaty stipulations would confront His Majesty’s Government with a serious responsibility, as such attack would be gravely prejudicial to the prospects of negotiating a friendly solution of an intricate problem.
4.
His Majesty’s Government desire to do their utmost to create a favourable atmosphere for negotiations. No responsibility attaches to them for political conditions in China which have prevented the commencement of serious discussions. They deplore the fact that this step has been prevented by such conditions and they appreciate the difficulties with which, in view of the prominence which has been given to the particular date January 1st, 1930, the Chinese Government may be faced should that date arrive without any visible progress having been made with detailed consideration of the problem of extraterritoriality. His Majesty’s Government are therefore willing to agree that January 1st, 1930, should be treated as the date from which the process of gradual abolition of extraterritoriality should be regarded as having commenced in principle and would have no objection to any declaration conformable with that attitude which the Chinese Government may think it desirable to issue. His Majesty’s Government are ready to enter into detailed negotiations as soon as political conditions in China render it possible to do so, with a view to agreeing on method and a programme for carrying the abolition of extraterritoriality into effect by gradual and progressive stages to the mutual satisfaction of both Governments.