CO129-529-5 China- extraterritoriality 23-11-1931 - 31-12-1931 — Page 111

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4.

One

exist. As regards foreign residents, however, and foreign commercial, financial and industrial interests, Greater Shanghai is a single indivisible unit, and the maintenance of extra-territorial privileges in one

section only of this area would be of little value.

of the main objects of the Foreign Office policy has been to prolong for a further period the enjoyment of

extra-territorial privileges not merely in the inter-

national settlement but in the whole of Greater

Shanghai. That object seemed to have been attained

when in May last the Chinese Minister for Foreign

Affairs offered to exclude the whole of Greater Shanghai from the area where subjects of His Majesty should be

amenable to Chinese jurisdiction. It did not therefore

appear to be wise to break off the negotiations without

accepting this offer and endeavouring to clinch the

bargain. The limitation of the period of exclusion to a fixed tem is, of course, a serious objection, but on balance the Foreign Office considered that the

objections to a time limit were outweighed by the very considerable advantages of securing full extra-

territorial privileges in the whole of Greater Shanghai for so long a period as ten years.

5. In reaching their decision on this point, the

Foreign Office were also moved by the consideration that

the position of foreign nationals in the international

settlement at Shanghai after they have surrendered their extra-territorial privileges will be stronger under the

Land Regulations than is generally supposed. The

Shonabad