-4-
Extract from the South China Morning Post of 24th. February, 1930.
an
Many Plans But-
their working (which, let me
add, 8ity in China, and it is upon it that ment, against which the courts of law include in this case a large amount of institutions like our own were found provide no defence. So many flagrant rolling-stock in everyday use on the ed and built up. Its abrupt termina- cases have been revealed in the public be lines), thereby involving private tion would, I have no hesitation in Press that examples need not
quoted. merchants in almost intolerable losses, saying, seriously imperil their
This state of affairs is, of course, We are given to understand that existence and be an act of the gravest elosely connected with the persistence the Ministry of Railways has the justice. matter of debt settlement in hand: What we therefore demand is, not of China, and one can fairly hope that of civil war throughout the provinces and we must hope that it will not that extrality shall remain in its a few years of peace and orderly go- be long before action is taken to unmodified form, but that its modifica vernment will remove the worst of remove the stigma which attaches to tion shall be gradual, the rate and the evil. But I wish to say with all the present state of affairs.
method being such as will at no stage the emphasis I can that unless and leave foreign firms in China without until this improvement takes place common legal safeguards. As to how it would be certainly premature, and far China has already progressed to not improbably disastrous in the wards herself providing these safe- fullest sense of the word, to place guards, opinions may vary. I can foreign businesses under the sovereign only say that the report of the 1926 control of local Chinese officials. If from Commission abundantly proved their we are presently to be called upon to inadequacy at that date, and that it come under Chinese law, it is here! cord is hardly impressive. Thanks is obvious that the four intervening more than in any other direction that in considerable part to
of years, filled as they have been by we look to our Government to assure remitted Boxer Indemnities there warfare and political turmoil, have us the protection so vitally needed. has been, it is true, a greater wrought no radical improvement.
Shanghai's Future. replacement of rolling-stock than for a good many years past and the benefit of this will inevitably lea itself felt if the lines can be kept free from the plague of military in- terference.
As regards the railways themselves, extension programme of almost staggering magnitude, requiring an expenditure of some $800,000,000 was adopted by the Third National Con- igress. But when
turn
·we plans to achievements, the
use
re-
Now the essential safeguards which The momentous question of the fu- we need for the carrying on of our ture status of the Shanghai Interna- business may be grouped under three tional Settlement is receiving official heads, reasonable laws, their im attention. The system of municipal | partial application by independent government under which the Settle- judges and, lastly, effective protection ment has attained to its present size against illegal administrative acts. and prosperity has a splendid record
Judicial Independence.
its credit. Altered conditions--
to
As regards the first, the Govern- of which the rapid expansion of ment, as stated, is busily enacting a "Greater Shanghai" outside the body of modern law. There may, as Settlement boundaries is perhaps
The "if," however, is a big one. The past year saw little improvement -taking the railways as a whole-in regard to military occupation or to the excessive taxation which goes with military control, transportation taxes I have mentioned before, be room for the most important-call, however, for of an almost prohibitive nature being improvement in the method of com an impartial examination and, it may levied as before on many of the pilation, but there is no reason to be, for some changes. principal lines. Conditions have been doubt that China will soon possess The Shanghai Municipal Council. more hopeful on the Shanghai-Nank- an acceptable instrument of justice have taken a wise step by obtaining ing and Shanghai-Hangchow railways, insofar as the actual codes are con as their adviser, in the person of in relation to which lines our asserned. When we come to admin Judge Feetham, a man of experience sociate, the British and Chinese Cor- atration we have, however, before us and high reputation in the practical poration, has been actively engaged the many recent cases in the Shanghai handling of problems of an analogous on schemes of co-operation with the Provisional Court, which have drawn nature. Let us hope that a solution Ministry of Railways.
forth protest from the Consular will be found which will provide the Disbandment.
Deputies and in the foreign Press, desired extent of Chinese co-operation Disbandment remains the most im- besides incurring the united strictures and also firmly guarantee the stan- portant issue in China's domestic of the Diplomate Body. One has only dards of efficiency and integrity which affairs, and if I mention it last this to look at the record of this court, the administration of the Settlement is only because there is, unhappily, to see the need of a further period: has enjoyed up to the present. nothing more to record than the hold- of development before foreigners can Other matters in China's relations ing of the two barren conferences look with confidence to the Chinese with foreign Powers to which time already mentioned. The President tribunals as a guarantee of justice. forbids me to make more than the himself has described disbandment as It is above all the lack of briefest reference are, firstly, the the touchstone of patriotism for judicial independence stressed by the evacuation Shantung by China's military commanders; the de- Commissioners in their 1926 Report. Japanese troops last May, resulting finition is exact and there is noth- as the outstanding defect of the in a relaxation of the tension which ing which would do more to restore courts which causes mistrust since had unfortunately existed between the the world confidence which China so įt has shewn itself all
too two countries for the previous year greatly needs than an effective agree- alearly in the frequent removal and, secondly, the Sino-Russian rup- ment among those same leaders for of judges and in avowed sub- ture over the Chinese Eastern Rail- the mutual reduction of troops. mission by the judiciary to political way which still awaits a final settle- Passing on to China's diplomatic re-authority. While gladly recognising ment although through traffic on the lations in 1929, I come to a question the progress already made, I cannot, railway has now been resumed. of vital importance for all foreign therefore but echo the British Govern- concerns, namely the abolition of ex-ment's statement in their note of araterritoriality. Having proved my August last.
mastery of that excessively poly- They there pointed to the need of syllabic word, propose by the waya far greater advance towards making -to save my tongue and your timea living reality of reforms, especially by using it in future in its telescopedin regard to freeing the courts from form and to call it "extrality." The outside interference and dictation. subject is so immense that I cannot Till this takes place, any transfer deal with it as fully as I should like to the Chinese courts of powers of and I shall confine myself to a fewjurisdiction over foreigners needs to comprehensive remarks from the pointbe strictly conditioned and limited. of view particularly of our own posi.
Illegal Treatment. tion in the matter.
to the third, and in Let me begin by saying that China'my opinion by far the most important, our requisite safeguards. A ambition to abolish the extralit of system and to see herself placed on thlance at current conditions in China to shew how absolutely footing of other nations is one whic is enough we understand and can feel for. I necessary it is that protection should the past however, as pointed out bexist against lawless impositions by the "powers that be." Individuals His Majesty's Government, and companies are notoriously subject system has been a recognised nece
to illegal and often extortionary treat-
Extrality Question.
th
I come now
!
of
the
Having made already considerable demands on your patience in dealing with the state of affairs in China, I must pass over much that would other- wise claim attention. Enough has, however, been said to show that the year on which we are entering opens a more than usually anxious prospect to foreign banks and businesses whose interests are vested in that country.
New Chief Manager.
I would ask your patience for a moment whilst I allude to a personal matter. I was 15 years in the ser- vice of the Bank. My first three and a half years in the East were spent in Penang, and when I was trans- ferred to Shanghai the man who came out from Home to relieve me was Mr. Hynes. You will understand, there fore, that I have followed his career
in the Bank with much interest.
I have now to inform you that Mr. Hynes has tendered his resignation, which the Directors have accepted
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