2
400
232
I am not, of course, in any way officially con-
More-
cerned with affairs in Shanghai; yet I cannot but continue
to take a keen interest in that Settlement, which I have
known for half a life time, and which is so splendid a
monument in China to British commercial enterprise.
over, I fully agree with Mr. Feetham and I cannot help
thinking that we have gone much too fast in discarding the
safeguards hitherto provided by British Treaties with
China. Until law and order are re-established in that
country, and more particularly until the whole region
surrounding Shanghai is under settled Government and not at
the mercy from time to time of successful and rapacious
War Lords, I believe that it will be highly dangerous to
whittle away at the extraterritorial safeguards now exist-
ing for foreign trade in that Settlement.
So I venture to
draw your attention to this subject in case your own
acquaintance with Shanghai may induce you to assist in put-
ting on the brake.
Sir Miles Lampson is away in North China, and he
is not, I am told, returning to Nanking until September
next, so there is a breathing space for reconsideration of
this very important matter, and I venture to hope that
nothing may be done by precipitate action to shake the
extraterritorial foundation of the International Settlement.
We ought not, of course, to overlook the position
of Japan with regard to this subject. Japanese interests
in Shanghai are very great and Japanese statesmen well
understand the danger of premature surrender of the extra-
territorial privileges of foreigners in China. If, there-
fore, the Japanese Government acquiesces in British action
which will undermine the security of the International
Settlement, I fear that it can only be because Japanese
policy is not unfavourable to any course of action, even
involving risk to themselves, which is likely to result
in
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