893.52/216: Telegram
The Secretary of State to the Minister in China (MacMurray)
363. Your 885, October 15, 1 p.m.
1. The Department has made a careful study of your despatches of June 21 and July 585 and other material bearing on re-examination by the Chinese authorities of title deeds held by American citizens. As the best means of epitomizing the conclusions reached there is given below the substance of observations which the Department proposes that you incorporate in a note to the Chinese Foreign Office. You are authorized to discuss the matter with your interested colleagues with a view to simultaneous or joint action if you so desire.
2. Substance of note to the Chinese Ministry of Foreign Affairs:
“Under instructions from my Government I have the honor to inform Your Excellency that American consular officials and American citizens in various parts of China have been approached by the local [Page 568] authorities with the demand that title deeds to real property held by American citizens be submitted to the local authorities for re-examination. These proposals have been reported to my Government, which now instructs me to make to Your Excellency certain observations regarding this subject.
The right enjoyed by American citizens to purchase or lease in perpetuity land and buildings in China is based upon treaties between the Chinese Government and the American Government. The methods in which American citizens have obtained deeds to property, however, and the character of the deeds themselves have differed in different localities. These differences have arisen from local customs, local laws and regulations and, in some cases, from special arrangements between the Chinese and certain foreign governments. It would appear from the information received by my Government that it is the intention of the National Government to bring about uniformity in the form of title deeds. I am instructed to inform Your Excellency that, if such is in fact an objective of the Chinese Government, my Government desires to suggest to the Chinese Government recognition of certain principles which, in its opinion, should be applied in order that the treatment accorded to American citizens holding title deeds to property in China may be fair and just.
My Government suggests, for example, that it should be mutually understood that an evidence of title otherwise valid is not to be held to be invalid through failure to present it for re-examination. The holder of a deed issued by an authority competent at the time of issuing shall not be required to pay any additional tax in obtaining a new deed. No deed shall be rendered invalid by virtue of any subsequent change in the official procedure through which it was obtained. The holder of a white deed shall receive a stamped deed for the same property upon payment of one tax based upon the value of the property at the time the white deed of transfer in question was negotiated. An American citizen holding a deed to real property purchased from another foreigner, when the seller’s ownership was recorded in his own consulate and when the white deed was recorded in the American consulate, shall receive a new deed from the Chinese authorities without payment of a tax. No re-examination of deeds nor payment of taxes or fees shall be required by the local Chinese authorities except in conformity with laws and regulations issued by the National Government. When deeds held by American citizens have been or shall be issued by the authorities of any foreign concession in China their validity shall be determined by the arrangements between the Chinese authorities and the authorities of the foreign nationality concerned in force at the time of issuing of the deed. These principles shall be applied in the case of deeds held as security by American citizens, companies and banks on the date borne by this note.
I am instructed to state that my Government would welcome an indication from Your Excellency that the views of the National Government are in accord with the principles just enunciated.”
3. Unless you have observations to offer regarding the substance of the proposed note you may send it, using such phraseology as you prefer. When the note has been sent you should inform American consular officers that the subjects mentioned are being discussed by [Page 569] the two governments and that they may request of the Chinese authorities a delay in proceedings until the discussions shall have terminated.
- Neither printed.↩