Directory_and_Chronicle_1941 — Page 247

CHINA

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siderable extent entrusted for their furtherance to the North China and the Central China Development Companies. From the already published reports of the two companies above mentioned, it would seem apparent that the com- mercial development expected has not yet met with the success hoped for, while efforts in other directions have already at the close of 1938 encountered various protests lodged with Tokyo by the French, British, and United States Govern- ments against the interference with established treaty rights involved in the blockading of the Yangtze River and the China Coast, commercial freedom under the open door, attacks on foreign property, personnel, etc. In this con- nexion it will be recalled that the Government of the United States of America, dissatisfied with the reply of the Japanese Government dated the 18th November 1938 to its note of the 6th October 1938 regarding the contravention of third Power rights and the principle of equal opportunity in China, addressed a further note to the Japanese Government on the 31st December 1938. In this further note the United States Government declared that "in the light of facts and experience the Government is impelled to reaffirm its previously expressed opinion that the imposition of restrictions upon the movements and activities of American nationals who are engaged in philanthropic, educational and commercial endeavours in China has placed, and will, if continued, increasingly place, Japanese interests in a preferred position, and is therefore unquestion- ably discriminatory in its effects against legitimate American interests." Re- ferring to exchange control, compulsory currency circulation, tariff revision, and monopolistic practices in certain areas of China, the note went on to say, the Government of the United States "expresses its conviction that the restric- tions and measures under reference are not only unjust and unwarranted but are counter to the provisions of several binding international agreements vol- untarily entered into, to which both Japan and the United States, and in some cases other countries, are parties.". Furthermore, it was affirmed that "the people and the Government of the United States could not assent to the esta- blishment, at the instance of and for the special purposes of any third country, of a regime which would arbitrarily deprive them of the long-established rights of equal opportunity and fair treatment which are legally and justly theirs along with those of other nations." Fundamental principles, such as that of equality of opportunity, it was pointed out, were not subject to nullification by unilateral affirmation, nor could the United States Government admit that "there is any need or warrant for any one Power to take upon itself to pre- scribe what shall be the terms and conditions of a 'new order' in areas not under its sovereignty and to constitute itself the repository of authority and the agent of destiny in regard thereto." The note concluded as follows: "The people and the Government of the United States cannot assent to the abrogation of any of this country's rights or obligations by the arbitrary action of agents or authorities of any other country. The Government of the United States has, howver, always been prepared, and is now, to give due and ample consideration to any proposals based on justice and reason which envisage the resolving of problems in a manner duly considerate of the rights and obligations of all parties directly concerned by processes of free negotiation and new commitment by and among all of the parties so concerned. There has been and there con- tinues to be opportunity for the Japanese Government to put forward such proposals. The Government has been and it continues to be willing to discuss such proposals if and when put forward with representatives of the other Powers, including Japan and China, whose rights and interests are involved at whatever time and in whatever place may be commonly agreed upon. Mean- while this Government reserves all rights of the United States as they exist and does not give assent to any assent to any impairment of any of these rights.

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At the time when negotiations between Japan and Great Britain were pro- ceeding, the United States Government on the 26th July gave Japan notice of the abrogation of the Treaty of Commerce and Navigation of 1911. On the 20th August the Anglo-Japanese negotiations regarding the Tientsin imbroglio reached a deadlock on the issue by the British Foreign Office of a statement to the effect that the British Government was not prepared to discuss, much less to enter into an agreement upon, currency and economic issues which involved