mending a grant of $15,000 Chinese, the mission hospitals are full of Chinese soldiers. The civilian refugees are without care. Hence the recommendation made. The Margaret Williamson Hospital grant here is also for civilian relief, emergency medical work. This hospital as you know cares for women and children. They have taken over the maternity work in the refugee camps and are carrying on in addition both in-patient and out-patient work amongst the poor and distressed. The support from their more well-to-do patients is gone. This hospital must be maintained. It is worthy of liberal support. I do not believe that we should limit Red Cross donations to funds for medical supplies. On the other hand these funds should not be available for salaries of executives, doctors, organization expenses and overhead. Let those be provided otherwise; let the Red Cross contribute to the 'medical care' where it is needed, principally in the way of medical supplies but not excluding equipment, food, nursing, et cetera." 3. Embassy approves recommendations made in Shanghai's October 16, 11 a. m. quoted above. Sent to the Department. JOHNSON 893.48/1295: Telegram The Ambassador in China (Johnson) to the Secretary of State NANKING, October 28, 1937-11 a. m. [Received 11: 20 a. m.] 862. 1. After consultation with Dr. B. Borcic, representative Health Department, League of Nations, and consultation between him and Minister of Health, Borcic has submitted following suggestions for use of funds remaining out of original Red Cross appropriation: "(1) 400,000 first aid kits or packages, at 13 cents each, total 52,000 Chinese dollars. (These packages can be made locally, and would be distributed to the soldiers in the front line. The present supply is insufficient. Packages would be labelled: 'Presented by the American Red Cross Society'). (2) 10,000 cotton quilts, at $3.50 each total 35,000 Chinese dollars. (3) 20,000 bed sheets, at $1.50 each total Chinese dollars 30,000. (4) 10,000 pillows, at 30 cents each total Chinese dollars 3000. (These items can be purchased locally. The army hospitals all over the country are in need of bedding, because administrative procedure is slow and the Chinese Red Cross Society is not able to meet the requests it receives). (5) Anti gas equipment total Chinese dollars 5000. (6) Equipment of 500 bed isolation hospitals at Soochow Chinese dollars 25,000. (7) Equipment of same at Tungkuan, Loyang, or Sian Chinese dollars 25,000. (8) Equipment of same at Hsuchowfu Chinese dollars 25,000. (9) Equipment of same at Hankow Chinese dollars 25,000. (There is a great need of isolation beds, both for soldiers and refugees. So far only Shanghai and Nanking have been able to meet the needs, but the anti epidemic units working in the fields report that without isolation hospitals their efforts will be greatly handicapped. It is therefore suggested that isolation hospitals be organized at the key positions where the masses of refugees are passing through, and where the anti epidemic units in the field could refer their contagious cases. The proposed amounts will be used for the purchase of necessary equipment. The Government will furnish the buildings, personnel, and running expenses). Grand total Chinese dollars 225,000.["] Embassy approved these suggestions as meeting most urgent present needs with exception that one item (preferably item number 3, bed sheets) should be reduced by Chinese dollars 5000 now being considered for Nanking University hospitals. Gauss has expended approximately United States dollars 22,000 (Embassy's 842, October 21, 10 a. m., and Department's 327 October 21, 6 p. m.20), United States dollars 10,000 has been expended for Canton (Embassy's 786, October 9, 11 a. m., and Department's October 11, 7 p. m. to Canton 20 not received Nanking), making total of almost United States dollars 33,000 expended and leaving United States dollars 67,000 still to be expended. It is recalled that Department's 279, September 29, 5 p. m. asked for suggestions concerning expenditures United States dollars 50,000 and Embassy forwards recommendations herein with hope that second United States dollars 50,000 can now be made available." 3. [sic] Generosity of the Red Cross has occasioned much favorable comment in official Chinese circles and press. Embassy believes that all above recommendations, including item number 1, will be of value in connection with our policy of friendship for the Chinese people. JOHNSON CONSIDERATION OF RESUMPTION OF NEGOTIATIONS FOR RELINQUISHMENT BY THE UNITED STATES AND OTHER POWERS OF EXTRATERRITORIAL RIGHTS IN CHINA" 793.003/850 The Ambassador in China (Johnson) to the Secretary of State No. 335 NANKING, February 3, 1937. [Received March 4.] SIR: I have the honor to state that the Embassy has occasionally encountered a rather hazy impression on the part of persons advocat 20 Neither printed. "The Red Cross made the funds available to carry out the recommendations of the Ambassador. 22 For previous correspondence, see Foreign Relations, 1931, vol. I, pp. 716 ff. ing the abandonment of American extraterritorial jurisdiction in China that submission by American citizens in China to the laws of the country will bring many compensating advantages, among them the privilege of residing and of engaging in business in all parts of the country and the enjoyment, in general, of the same body of rights as Chinese citizens. That this supposition is not in accord with the intention of the Chinese Government has been indicated in replies to direct questions put to Chinese officials. On this point, also, the Treaty of Amity between China and Latvia, signed in London on June 25, 1936,23 states in Article V: "They (i. e. the nationals of the contracting Powers) shall have the right, subject to the laws and regulations of the country, to travel, reside, work and engage in commerce and industry in the localities where the nationals of any third country are allowed to do so". (For the text of the Treaty see despatch No. 920, of December 16, 1936, from the Embassy, Peiping.24) Latvia does not exercise extraterritorial jurisdiction in China. This subject was recently brought to the attention of the Embassy by a press release of the official Central News Agency bearing the date-line, Nanking, January 29, 1937, which asserts that no difference will be made in rights of residence granted by the Chinese Government to nationals of non-extraterritorial powers, as contrasted with nationals of countries possessing extraterritorial jurisdiction in China. An interesting statement in the release is one to the effect that non-extraterritorial foreigners will be subject to the same taxation as Chinese citizens. The implication is plain that, in the mind of the anonymous "well-informed" speaker, extraterritorial foreigners are not subject to such taxation. In reference to this it may be observed that although extraterritorial foreigners in China do, in fact, successfully maintain their immunity from many forms of taxation in China, the present Political Vice Minister for Foreign Affairs in conversation with an officer of the Embassy has denied any logical basis for the contention that the immunity from Chinese court jurisdiction granted by some treaties carries with it freedom from the obligation to pay the usual taxes collected by the Government of a country from foreigners living in its territory. A copy of the Central News Agency press release referred to above is enclosed.25 Respectfully yours, NELSON TRUSLER JOHNSON 23 League of Nations Treaty Series, vol. CLXXVI, p. 275. 24 Despatch not printed. Not reprinted. 893.00/14054: Telegram The Ambassador in China (Johnson) to the Secretary of State NANKING, March 15, 1937-2 p. m. [Received March 15-10: 55 a. m.] 116. 1. The National Government Gazette has published instruction to Executive and Judicial Yuans dated March 6 which (1) quotes in part a resolution passed by recent plenary session of Central Executive and Supervisory Committees that "the Government should conduct negotiations with the countries concerned for the early abolition of extraterritorial rights enjoyed by them in China in order to uphold the integrity of the judicial rights of our country” and (2) instructs the Executive Yuan "to direct the Ministry of Foreign Affairs to conduct effective negotiations.["] 2. The resolution was not previously made public and no reference to it was contained in current press and other reports of the session's proceedings. New Minister for Foreign Affairs 26 made no direct reference to extraterritoriality in his statement of policy issued March 8 (see our No. 107 March 8, 4 p. m.27) and did not mention matter to me when I called March 10 (see our No. 113, March 11, 10 a. m.28). 3. I have not heard that the Chinese have broached the question to any foreign mission. I am accordingly unable to say at present whether this instruction portends a definite revival of the question or whether the resolution and consequent instruction may be regarded as gestures designed chiefly to keep the matter on the record. 4. One curious circumstance is that Reuters from Tokyo March 5th stated that "profound sympathy and full appreciation is being voiced by Foreign Office circles for the Chinese national aspiration to abolish courts in China" and "it is understood that the new Foreign Minister is starting negotiations with foreign powers for the early abolition of extraterritoriality". This may indicate that the Japanese themselves have directly or indirectly raised the question with a view to (1) undermining the status of certain foreigners in China, (2) directing attention from themselves to the loss of Chinese sovereignty inherent in the extraterritorial rights enjoyed by "imperialist" treaty powers, (3) following a natural course consequent upon and consistent with the abolition of extraterritorial rights in Manchukuo. 5. To the Department. By mail to Peiping, Tokyo. 26 Wang Chung-hui. 27 Vol. III, p. 35. 28 Not printed. JOHNSON 793.003/850a: Telegram The Secretary of State to the Ambassador in China (Johnson) WASHINGTON, March 17, 1937-6 p. m. 55. For the attention only of the Ambassador and the Counselor.29 The Department has for some time been giving thought to the question of the advisability of this Government taking the initiative in approaching the Chinese Government with an offer to resume the extraterritoriality negotiations which have been in abeyance since 1931. Before giving further consideration to the matter, the Department desires to have the benefit of your views and comments. It is particularly desired that you give your considered opinion as to the opportuneness of such action at this time, bearing in mind in that connection (1) the question whether the resumption of such negotiations at this time would be likely to have a disturbing effect upon the general situation in the Far East, with special reference to Sino-Japanese relations, and (2) the question of the likelihood of the Chinese Government being willing to accept a draft of a treaty following substantially the lines of the draft treaty of July 14, 1931 30 (a copy of which was forwarded to Peiping under cover of Department's instruction No. 550 of July 17, 1931 31). If, in your opinion, the Chinese Government would be likely to insist upon an agreement providing for a much more far-reaching relinquishment of American extraterritorial rights than that envisaged in 1931, it is desired that you give your view as to whether in the light of existing Chinese laws and administration of justice this Government would be warranted in taking an initiative in the matter. The Department feels that this is a matter in which this Government should continue as in the past to collaborate with the British Government and the Department would therefore hope, before approaching the Chinese in the matter, to confer with the British Government. The Department would also hope, prior to initiating negotiations, to inform the Japanese Government and perhaps other interested governments of its intentions in the matter. Please reply at early date. 793.003/855: Telegram HULL The Ambassador in China (Johnson) to the Secretary of State NANKING, March 22, 1937-10 a. m. [Received March 22-9:15 a. m.] 126. Department's telegram No. 55, March 17, 6 p. m. 1. As the Department is aware, the recent plenary session of the Central Executive Committee adopted a resolution calling upon the |