CO129-529-5 China- extraterritoriality 23-11-1931 - 31-12-1931 — Page 170

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I am not, of course, in any way officially con-

More-

cerned with affairs in Shanghai; yet I cannot but continue

to take a keen interest in that Settlement, which I have

known for half a life time, and which is so splendid a

monument in China to British commercial enterprise.

over, I fully agree with Mr. Feetham and I cannot help

thinking that we have gone much too fast in discarding the

safeguards hitherto provided by British Treaties with

China. Until law and order are re-established in that

country, and more particularly until the whole region

surrounding Shanghai is under settled Government and not at

the mercy from time to time of successful and rapacious

War Lords, I believe that it will be highly dangerous to

whittle away at the extraterritorial safeguards now exist-

ing for foreign trade in that Settlement.

So I venture to

draw your attention to this subject in case your own

acquaintance with Shanghai may induce you to assist in put-

ting on the brake.

Sir Miles Lampson is away in North China, and he

is not, I am told, returning to Nanking until September

next, so there is a breathing space for reconsideration of

this very important matter, and I venture to hope that

nothing may be done by precipitate action to shake the

extraterritorial foundation of the International Settlement.

We ought not, of course, to overlook the position

of Japan with regard to this subject. Japanese interests

in Shanghai are very great and Japanese statesmen well

understand the danger of premature surrender of the extra-

territorial privileges of foreigners in China. If, there-

fore, the Japanese Government acquiesces in British action

which will undermine the security of the International

Settlement, I fear that it can only be because Japanese

policy is not unfavourable to any course of action, even

involving risk to themselves, which is likely to result

in

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