CO129-529-5 China- extraterritoriality 23-11-1931 - 31-12-1931 — Page 112

5.

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Shanghai Municipal Council will still continue to possess all the powers conferred on them by the Land Regulations, they will still be subject only to the

jurisdiction of the Court of Consuls, and therefore

in the exercise of these powers they will enjoy the

protection of extra-territorial status. It is possible,

therefore, that it may not be so difficult as the

State Department is disposed to believe to reach some

agreement with the Chinese Government before the end

of the ten year period on the subject of the future

administration of Shanghai.

6. The Foreign Office view with considerable

concern the proposal of the State Department to abandon

in the last resort the reservation of Tientsin with &

view to securing the assent of the Chinese to the

remaining provisions of their Draft cf Article 16.

There are considerable British interests at Tientsin

and from the point of view of the general foreign

position in China Tientsin is comparable to, and stands second only to, Shanghai. His Majesty's Government therefore attach great importance to the reservation of Tientsin, if only for the comparatively short period

of five years. Such a breathing space appears to them

to be essential.. It was with great difficulty that

they secured the assent of the Chinese Minister for

Foreign Affairs to this provision in Article 16.

If

the same demand is strongly pressed by the United States Government, the Chinese Goverment will probably yield,

but if the United States Goverment show any sign of

weakening on this point there is little doubt that the

Chinese