[This Document is the Property of His Britannic Majesty's Government, and should be

returned to the Foreign Office if not required for official use.]

332

From CHINA.

Decode.

Sir M. Lampson, (Peking),

15th June, 1931.

D.

17th June, 1931.

R.

9.00 a.m. 17th June, 1931.

No.180. (R).

10

Following received from Shanghai, No.70, June 12th, Begins:

United States Minister has asked me to convey the following message for your confidential information re- garding extraterritoriality negotiations now procecding in Washington.

Begins:-

The department has informed me that in a conversa-

tion between C.C.Wu and Mr. Hornbeck on June 6th Chinese

Minister asked whether Mr. Hornbeck could give him an answer to proposal made by Chinese Minister of May 27th in regard to exclusion of greater Shanghai area and that only. This I understand was the same one made by Dr. Wang to Sir M. Lampson. Chinese Minister was informed

we would prefer to refrain from further discussion on the question of excluded areas until the question of text upon which discussions had proceeded had been disposed of; that we desired that this work go on. Chinese Minister replied that this would be agreeable to him.

In the course of this discussion Chinese Minister stated that he had heard from a "reliable source" that British did not really consider it important to exclude any area except the one at Shanghai and that they were using the other three ports for bargaining purposes. Chinese Minister asked whether we had had informab Lou on that point. Chinese Minister was informed that if such were the case British government would not be liko ly to inform anyone.

Ends

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