Circulated to the Cabinet by directing of
The Secretary of State, forest
1Majesty's Everfants,
[This Document is the Property of His Britannicˇ Maještý
CHINA.
CONFIDENTIAL
21
[December 18, 1926.]
SECTION 1.
[F 5688/10/10]
No. 1.
Statement regarding British Policy in China communicated by His Majesty's Chargé d'Affaires in Peking on December 18 to his Eleven Colleagues representing the Washington Treaty Powers other than China.
FOR some time past His Majesty's Government have watched with growing anxiety the situation in China, and they believe that this anxiety will be shared by the Governments of the interested Powers. Five years ago the Powers assembled at Washington and, taking into consideration the circumstances then existing in China, they agreed among themselves, in conjunction with the representatives of the Chinese Government, that their future policy should be guided by certain general principles designed to safeguard the integrity and independence of China, to promote her political and economic development and the rehabilitation of ber finances. It was agreed to grant her certain increases on her treaty tariff in order to provide the revenue required for these purposes. It was further agreed that a commission should examine the question of extra-territoriality with a view to amending the system now in force by the elimination of abuses and accretions and by the removal of unnecessary limitations on China's sovereignty.
2. Unfortunately the Tariff Conference did not meet for four years, and during that period the situation had greatly deteriorated. During a succession of civil wars the authority of the Peking Government had diminished almost to vanishing point, while in the south a powerful Nationalist Government at Canton definitely disputed the right of the Government at Peking to speak on behalf of China or enter into binding engagements in her name. This process of disintegra- tion, civil war and waning central authority continued with increased acceleration after the Tariff Conference had met until eventually the conference negotiations came to an end because there was no longer a Government with whom to negotiate. 3. The Commission on Extra-territoriality has meanwhile completed its labours and presented its report, but here, again, we are faced with a similar difficulty due to the disintegration of China. The recommendations contained in the report, while suggesting certain reforms capable of being carried into immediate effect, presuppose for their full execution the existence of a Government possessing authority to enter into engagements on behalf of the whole of China.
4. During all these civil wars it has been the consistent policy of His Majesty's Government to abstain from any interference between the warring factions or rival Governments. Despite the disorders which civil war engenders and the grievous losses inflicted on the vast commercial interests, both Chinese and foreign, His Majesty's Government have declined to associate themselves with any particular faction or to interfere in any way in the civil commotions. His Majesty's Govern- ment believe that the Powers have adopted a similar attitude and that this is and will continue to be the only right attitude to maintain.
5. The situation which exists in China to-day is thus entirely different from that which faced the Powers at the time they framed the Washington treaties. In the present state of confusion, though some progress has been made by means of local negotiation and agreements with regional Governments, it has not been possible for the Powers to proceed with the larger programme of treaty revision which was foreshadowed at Washington or to arrive at a settlement of any of the outstanding questions relating to the position of foreigners in China. The political disintegra- tion in China has, however, been accompanied by the growth of a powerful Nationalist movement, which aimed at gaining for China an equal place among the nations, and any failure to meet this movement with sympathy and understanding would not respond to the real intentions of the Powers towards China.
6. His Majesty's Government, after carefully reviewing the position, desire to submit their considered opinion as to the course which the Washington Treaty Powers should now adopt. His Majesty's Government propose that these Govern- ments shall issue a statement setting forth the essential facts of the situation: declaring their readiness to negotiate on treaty revision and all other outstanding
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