I have consulted Admiral Grayson with reference to the text and he has asked me to state that the usual procedure of the American Red Cross is to give sympathetic consideration to the recommendations of the International Red Cross Committee or its delegates in situations such as exist in China today.

The delegate of the International Red Cross Committee, Colonel Charles de Watteville, left Europe September 4th by airplane for Singapore and intended to go from there to Shanghai via Hong Kong. He should now be in China or should shortly arrive there. He will call immediately upon the Chinese Red Cross and will undoubtedly be available for consultation.

Therefore, the Consul General or any interested persons might arrange a conference with Colonel de Watteville regarding the form of participation of Americans or other nationals in the work of the Chinese Red Cross.

It would also seem preferable if a committee is to be formed that it be international rather than American, thereby coordinating the relief activities as well as other responsibilities."

HULL

893.48/1273: Telegram

The Ambassador in China (Johnson) to the Secretary of State

NANKING, October 18, 1937-11 a. m. [Received 6:43 p. m.]

820. 1. Following from Shanghai:

October 16, 11 a. m. Reference my October 9, 3 p. m.19 Following additional recommendations have been received from our Advisory Committee and are approved by the Commander-in-Chief and myself:

Grant $9,000 Chinese currency to emergency medical relief work of the Margaret Williamson Hospital at Shanghai. This hospital operating in temporary quarters has been doing urgent maternity work amongst refugees in refugee camps besides medical work amongst poor and homeless women and children.

Grant $15,000 Chinese currency for medical care of the refugees at Soochow, to be administered through the one American member of the International Relief Committee in that city. This Relief Committee has established six groups of refugee camps and finds it necessary to set up improvised hospitals in connection therewith. The mission and other hospitals at Soochow are crowded with soldier wounded. Letter follows by hand tomorrow.

2. Letter from Gauss dated 16th contains following which gives background of his recommendations:

"The immediate need is for the Chinese. The Red Cross has allocated medical supplies to the Chinese Red Cross for military medical work. It seems to me our obligation here is to look after the civilian needs first for the time being. At Soochow, where we are now recom

19 Not printed.

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.21 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 22

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.

21 The Red Cross made the funds available to carry out the recommendations of the Ambassador.

22 For previous correspondence, see Foreign Relations, 1931, vol. ш, 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.

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