of its officers in China in all cases. The Department would deprecate, for instance, a statement so categorical as the following, contained in a letter dated July 12, 1927, from the Consul at Foochow, addressed to "All Mission Schools, Foochow" 54 and transmitted with the despatch already referred to: "Subject to instructions to the contrary, I am prepared to state that any institution registered under the regulations cited is entirely Chinese, and, as such, has no right to the recognition or assistance of the American Government." It should be noted that this correspondence was not referred to the Department until the covering despatch dated February 17, 1928, was written. The Department considers that American consular officers when called upon to exercise their good offices on behalf of American missionary institutions, particularly educational institutions registered under Chinese regulations, should exercise the utmost tact and endeavor so far as may be possible to exert a conciliatory influence in such cases of conflict as may arise. The Department is sanguine that the American missionary institutions in China, the Chinese citizens interested therein and the Chinese authorities will be able gradually to arrive at a readjustment of their mutual relations in such matters, for instance, as the registration of mission schools. The Department is, of course, responsible for the oversight of the welfare of American interests in general in China, and it has and it reserves the right to intervene whenever it considers that action in the nature indicated is advisable. With this general reservation, however, the Department considers that American consular officers would be well advised to refrain from any attempt to crystallize prematurely or to influence the course of such changes in the status of American missionary enterprises in China as are taking place with the apparent acquiescence of all the parties concerned. It would be preferable to allow these matters to take their natural course. Until the present treaties between the United States and China are modified by mutual agreement, American missionary institutions in China will be entitled to rely upon such provisions thereof as define their rights and obligations, but if these institutions themselves desire to forego some of the advantages granted to them under the treaties, the Department considers it desirable, within the limitation of what is legally permissible, not to interpose obstacles. While the Department desires to leave American missionary and philanthropic institutions free to follow such courses in this respect as seem to them most advantageous in the prosecution of their work, "Not printed. and while it desires to extend to them every assistance consistent with the course which they elect to follow, it should be made clear to the American institutions concerned that when the control of their enterprises and of their property is by them given to Chinese citizens they must look primarily to the Chinese authorities for protection. Chinese citizens are not amenable to American law nor are they entitled to any of the benefits accruing to American citizens and institutions from the treaties. The American Government is thus estopped from intervening on their behalf. It is assumed that American institutions in making these new arrangements will protect themselves, so far as possible, by forms of contract that will enable them to have recourse to Chinese courts for the remedy of any injuries received. The jurisdiction of American courts, of course, will be asserted over American legal persons and their property, and appropriate assistance will be rendered in cases of denial of justice, but the limitations and modifications which necessarily flow from the transfer of authority must be recognized. Unless the Legation desires first to make comments in this connection, pertinent portions of the present instruction should be communicated to American consuls in China for their guidance. I am [etc.] For the Secretary of State: 393.1164/98 The Minister in China (MacMurray) to the Secretary of State No. 1742 PEKING, November 8, 1928. SIR: I have the honor to enclose copy of Consul General Cunning. ham's despatch No. 5716, of October 27, 1928, concerning the registration of American missionary educational institutions with the Nationalist authorities. In this connection, the Department's attention is invited to Consul Adam's despatch to the Legation No. 568, of October 26, 1928,55 regarding the seizure by the Chinese authorities of heroin from an American company, copies of which were sent direct from Hankow to the Depart ment. It is believed that the two incidents reported in these despatches give a distinct forewarning of the difficulties which, from now on, will be increasingly experienced by American interests in China, both business and missionary. The Nationalist officials of today are more endowed 65 Not printed. with enthusiasm for asserting authority and control over foreigners than with experience and judgment. Many of them are men who have heretofore been persons of no importance, who are without any real qualifications for the positions they hold, and who, suddenly finding themselves possessed of unexpected power, are inclined to exercise it unadvisedly and with utter indifference to the rights of foreigners, and with entire disregard of economic consequences to China itself. With such a situation, and with the Central Government exercising only a most nominal control of the provinces, the affording of any real protection to American interests by the Legation and by the Consulates is certain to become exceedingly difficult, if not almost impossible. I have [etc.] J. V. A. MACMURRAY [Enclosure] The Consul General at Shanghai (Cunningham) to the Minister in China (MacMurray) No. 5716 SHANGHAI, October 27, 1928. SIR: With reference to the Legation's circular instruction No. 283 of October 2, 1928,56 I have the honor to transmit a copy of a letter dated October 16, 1928, from the President of the University of China, calling attention to the requirements of the Nationalist Government in regard to the registration of schools, and also a copy of this office's reply to Dr. Rankin. 56 As intimated in previous correspondence, the requirements for the registration of American schools with the Chinese authorities compels the schools to renounce their American nationality to a large extent and would appear to remove them from the classification of religious institutions. In the event that the University of China desires to file a protest and requests the assistance of this office in resisting registration, a protest will be filed in accordance with the Legation's telegram of December 23, 1:00 p. m., 1927.56 Any further precedents or instructions which the Legation considers desirable to transmit would be very much appreciated. It is difficult to know exactly what steps should be taken. The school might be closed as a protest against the requirements of the Chinese authorities but this would render useless a large American investment and it would appear that since citizens of the United States have by treaty the right to maintain schools in China under their own supervision, this would be unfair both to the mission society and to the American contributors who have a vested interest in the particular school. I am impressed with Dr. Rankin's reasoning as set forth in the paragraph of his letter which states: "Not printed. "If China may thus take charge of and control the administration of missionary corporations and private institutions, she may in like manner, as it would seem, take charge of and control every private business of any and every foreigner in China. If she may thus take control of private business, she may through such control destroy the business thus controlled. And thus she may indirectly, but without question, expel every foreigner from her domain, though apparently claiming to maintain a friendly and peaceful relation with other nations. If American business concerns in China are required to register with the Chinese authorities under the Registration Act which was promulgated on October 29, 1927,57 the laws may be changed requiring the president or the head of the concern to be a Chinese, and thereby place American capital under the direct control of Chinese. This fear has long existed in my mind and the minds of many local business men. It is felt that such a fear is well founded and Dr. Rankin's illustration is very apt indeed because if once these firms are registered, the laws may be changed in such a manner as to effect what will be practically a confiscation of American undertakings acquired in a legitimate manner and supported by American capital. I have [etc.] EDWIN S. CUNNINGHAM [Subenclosure] The Consul General at Shanghai (Cunningham) to the President of the University of China (Rankin) SHANGHAI, October 27, 1928. SIR: The receipt is acknowledged of your letter of October 16, 1928,57 stating some of the requirements for the registration with the Nationalist authorities of schools supported by church constituencies in western lands. You state that if registration is required, you desire to protest against each and all of the requirements as being contrary to the spirit of amity and good will that should obtain between different nations. Your letter presents the question in a slightly different light from that in which it has previously been presented. This office desires to extend to those American institutions which seek it, all the protection guaranteed Americans in the Sino-American treaties, which they have a perfect right to demand. It would appear that the attempt of the Chinese authorities to enforce the four requirements mentioned in your letter has no authoritative basis in the treaties and therefore, whenever you request it, a protest will be filed with the Chinese authorities against such registration. It is certain that neither international law Not printed. 237577-43- 44 nor the Sino-American treaties recognize the right to confiscate legitimately acquired property of American citizens in China. If you are approached by the Chinese authorities seeking to require the registration of your institution, and do not desire to comply, this office will be very glad to take up the matter with the Chinese authorities. It may interest you to have the following authorized statement of the American Minister in regard to the status of institutions which may elect to register with the Chinese Government: [Here follows text of penultimate paragraph of instruction No. 871, May 23, 1928, to the Minister in China, printed on page 570.] Very respectfully yours, EDWARD S. CUNNINGHAM RESERVATION OF AMERICAN RIGHTS WITH RESPECT TO CHINESE REGULATIONS AFFECTING FOREIGN MISSIONARY PROPERTY 893.1163 Property/1: Telegram The Minister in China (MacMurray) to the Secretary of State PEKING, August 2, 1928-10 a. m. 591. 1. The following regulations have been communicated by the Nanking and Shantung Commissioners of Foreign Affairs to Paxton and Price, respectively, with the statement that they have been received from the National Ministry of Foreign Affairs, which, together with the Ministries of Interior and Justice, has drawn them up. The Shantung Commissioner also requested that American missions be at once instructed to report all the properties. "Provisional regulations governing the lease of land and buildings in the interior by foreign missionary societies. "Article 1. Any foreign missionary society, which establishes churches, hospitals, or schools in the interior under the provision of the treaties existing between respective countries and China may, in the name of the missionary society, lease land for building purposes or lease or purchase buildings. "Article 2. Foreign missionary societies which lease land in the interior for building purposes, or lease or purchase buildings, shall submit both to existing Chinese laws, taxes and such as may hereafter be established. "Article 3. Foreign missionary societies, which lease land in the interior for building purposes or lease or purchase buildings, must, together with the owner of the property, report to the appropriate authorities for approval before the deeds may be considered valid. "Article 4. In the event that the area of land leased in the interior to a foreign missionary society for building purposes or buildings 50 Telegram in two sections. |