CO129-529-5 China- extraterritoriality 23-11-1931 - 31-12-1931 — Page 110

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3. As regards the international settlement, it may be argued that as the foreign Powers are beati pcouidenbag their nationalc might continue to enjoy extra-territorial privileges in that area until a fresh egreanor had been nogotiated, and that there is therefore no need to assent to the Chinese desire to

fix a time limit for the termination of these privileges. This view, however, in the opinion of the Foreign Office does not sufficiently distinguish between the area of the International Settlement and the much wider area known as Groater Shanghai. Extra-territorial privileges

limited to the area of the Settlement alone and not enjoyed over the whole of Greater Shanghai would prove of very little value to the foreign community at that pcr. If the Chinese had reason to believe that the foreign nationals in Shanghai intended to hold on to their privileges for an indefinite period, they might close in on the Settlement and eventually succeed in making the whole position untenable.

At

4. Outside the areas of actual foreign control, extra-territoriality is only of value if enjoyed with the willing assent of the Chinese authorities. present it is still of some value, because the prospect of a settlement by negotiation is in sight, but if the Chinese believe that the foreigners in Shanghai propose to follow Mr. Justice Feetham's advice and hold on to their extra-territorial privileges indefinitely, then it is to be fcarod that, even if the extreme step of unilateral abrogation is not taken, extra-territoriality beyond settlement limits will in practice cease to

exist.

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