893.102S/2223a: Telegram
The Secretary of State to the Ambassador in Japan (Grew)
321. Please seek an early interview with the Minister for Foreign Affairs and renew representations in the matter of the Shanghai defense sectors along lines substantially as follows:
This Government is gratified to note that the Japanese Government shares the opinion of this Government that the matter of the Shanghai defense sectors is susceptible of amicable and equitable settlement.
With reference to the inquiry of the Foreign Office whether this Government’s reference to the “discussions between the Japanese and American Governments” was meant to imply that the question was to become a matter of diplomatic discussions between the two Governments, this Government is of the opinion that unless the Japanese military authorities at Shanghai should decide to reconsider their position with respect to consideration of the proposal for reallocation of the sectors upon the basis recommended by the Defense Committee and approved by the Municipal Council, it would seem that this Government has no alternative to presenting its views to the Japanese Government.
With reference to the suggestion that Sector B hereafter be given the special protection of the Shanghai Volunteer Corps only, it is observed that the Shanghai Volunteer Corps is an organization composed [Page 789] largely of volunteers whose military duties are subsidiary to their normal business activities and who cannot reasonably be expected to assume and discharge, except for brief periods, the responsibilities of affording special protection to a sector of the International Settlement. To this Government that proposed disposal of the problem appears not practicable.
This Government attaches importance to the reasonable position taken by the majority of the Defense Committee and by the Municipal Council in allocating Sector D to the Japanese forces and Sector B to the American marine detachment. To it that solution seems definitely favorable to Japan, especially in light of the fact that Japanese forces already occupy a large section of the Settlement (Hongkew), including a long frontage on the Whangpoo.
This Government believes that the principles underlying the international character of the Settlement should be supported and maintained by all parties having legitimate interests in the Settlement.
The views of this Government in regard to this point have on various previous occasions been made known to the Government of Japan. Shanghai is a great cosmopolitan center, with a population of over 3 million, a port which has been developed by the nationals of many countries, at which there have prevailed mutually advantageous contacts of all types and varieties between and among the Chinese and people of almost all other countries of the world. At Shanghai, there exists a multiplicity of rights and interests which are of inevitable concern to many countries, including the United States. Since the earliest days of the International Settlement it has necessarily been the policy of the Municipal Council, an agency of government whose officers are elected by the taxpayers of the Settlement regardless of nationality, to avoid involvement in controversial matters arising from causes beyond the Settlement boundaries. Inasmuch as the rights of the various powers having interests in the Settlement flow from treaties and international agreements and can be altered or modified only by the consent of the parties thereto, those rights are not and cannot be affected by such controversial matters. The Settlement authorities have made and are making great effort to deal with the realities of the current very difficult problems which confront them and they are entitled to expect every consideration from the civil and military agencies of all the interested powers in assisting them to remain aloof, consistently with the unique international character of the Settlement, from controversial matters arising from causes beyond the Settlement boundaries. And logically flowing from these circumstances is the premise that no one power having interests in the Settlement, however extensive they may be, should, because of developments which have their origin elsewhere, take a position in or with regard to the Settlement which will tend to prejudice or destroy the international character of the Settlement.
For the purpose of assisting the Municipal Council in the protection of the lives and property of the nationals of the various countries concerned and in the maintenance of conditions of peace and security in the Settlement, the several treaty powers, including the United States and Japan, have found it necessary during recent years to station a limited number of their armed forces in the Settlement on a temporary basis. As for the American forces, their sole mission has been assistance [Page 790] towards maintenance of conditions of peace and security, and it has been the desire and the intention of the American Government to withdraw these forces when performance of their function of protection is no longer called for; such remains this Government’s desire and expectation; and this Government has so declared publicly on several occasions. Meanwhile the American landed force constitutes an integral part of the “defense” scheme of the International Settlement under which the sectors allotted to forces of various nationality conform in general, in so far as the necessities of the defense problem allow, to the areas in which the respective powers, by reason of the residence of their nationals and the location of property and business enterprises, have their material interests. The original proposal of the American forces to take over both of the areas about to be evacuated by the British was based upon the fact that those areas are regions in which American interests are greater than are those of any other power that is to be represented in the revised defense scheme. In regard to Sector B those considerations are especially pertinent.
Keeping in mind the international character of the Settlement, the American local authorities, when there was presented a compromise proposal which provided for the occupation of Sector D by the Japanese forces and occupation of Sector B by the American forces, readily agreed to that compromise.
This Government considers that the solution thus proposed and voted by the majority is in harmony with the principles underlying the international character of the Settlement, and it does not believe that the lack of unanimity in the voting is sufficient ground upon which to reject that solution, especially as unanimity would be impossible to attain if any one commanding officer continued to vote “no” to that suggested solution and the same or any other commanding officer were to vote “no” to other suggested solutions.
The American Consulate General and important American business interests are situated in Sector B. This Government considers it important that there be assured freedom of communication between the Consulate General, the American marine detachment ashore, and the American naval vessels lying in the Whangpoo River.
It is understood, of course, that the presence of any armed forces other than Chinese at Shanghai has been and is a temporary expedient. Both the Japanese Government and this Government have declared such to be their view, and each has announced its intention to withdraw its forces when conditions prevail in which their presence is no longer called for. The paramount consideration, therefore, in considering and deciding upon disposal of the forces for special protection, should be that of best meeting the requirements of the local situation under existing circumstances.
It is suggested that, in accordance with your usual practice, you furnish the Minister for Foreign Affairs with an informal memorandum to serve as a record of your oral presentation of the foregoing subject matter. The Department desires, however, that in addition you communicate orally and without written record certain further observations, as set forth below, which should not be included in [Page 791] the memorandum unless you consider that their inclusion would tend to have a favorable effect toward achieving the objective of your approach, as follows:
This Government considers it important that a solution of this question be reached by agreement upon an equitable arrangement. Any other procedure and arrangement would raise very serious questions involving for this Government the necessity to revise the lines of its policy toward the protection of American interests in China. In regard to lines along which this Government would be compelled to think, we consider that insistence by the Japanese Government on a solution at Shanghai which rejects and overrides the reasonable and equitable solution offered by vote of the majority of the Defense Committee and the approval of the Municipal Council would be unsatisfactory from the point of view of American interests at Shanghai in general and from the point of view of the practical and appropriate functioning of our marine detachment in particular. It might at first thought appear to the Japanese Government that continued opposition to the occupation of Sector B by the American forces would be to Japan’s advantage, but we believe that on reflection it will be realized that insistence by the local Japanese authorities upon the position adopted by them would produce a situation inherent within which and flowing from which there would be substantial disadvantages to Japan. This Government might, in that event, find it necessary to make public a full exposition of the situation which had developed. The explanation would necessarily include a statement that the Japanese Government had taken the position that Japanese interest and concern were paramount and exclusive. The publication of this explanation would, in view of the cumulative effect of the large-scale interference by Japanese authorities with legitimate American activities in China and the agitation which Japanese agencies have conducted against American citizens and their interests, inevitably call into question the policy of patience which this Government has consistently pursued in its relations with Japan, and this Government would have to examine anew in the light of this situation the many benefits which this country has continued to extend to Japanese commerce and nationals in this country—with a view to making the treatment accorded by it to that commerce and those nationals more nearly reciprocal with that which is being accorded by Japanese authorities to American commerce and American nationals in China.
Sent to Tokyo via Shanghai. Repeated to Chungking, Peiping and to Tsingtao for information Commander-in-Chief.