PRINCIPLES AND POLICIES IN RELATION TO CHINA

The work of the Conference in connection with Far Eastern matters was largely devoted to the effort to give new vigor and reality to the coordinated principles of territorial and administrative integrity of China and of the "Open Door" or equality of opportunity for all nations in China. These principles have been called coordinate, but they are, in fact, different aspects of the same principle. For any impairment of the sovereignty of China must affect the rights and interests of other powers in relation to China; and any attempt to establish a particularistic and exclusive system in favor of any foreign nation thereby creates conditions prejudicial to China's freedom of action in relation to other Powers. The distinction between the two phases of this question would therefore seem to be one of relative emphasis rather than of kind.

As the foundation of its work in relation to China, the Conference adopted the following fundamental principles, in agreeing:

"(1) To respect the sovereignty, the independence, and the territorial and administrative integrity of China;

"(2) To provide the fullest and most unembarrassed opportunity to China to develop and maintain for herself an effective and stable government;

"(3) To use their influence for the purpose of effectually establishing and maintaining the principle of equal opportunity for the commerce and industry of all nations throughout the territory of China;

(4) To refrain from taking advantage of conditions in China in order to seek special rights or privileges which would abridge the rights of subjects or citizens of friendly States and from countenancing action inimical to the security of such States."

Thus were reaffirmed the postulates of American policy which were no longer to be left to the exchanges of diplomatic notes, but were to receive the sanction of the most solemn undertaking of the Powers.

This statement was supplemented by the agreement that the Powers attending the Conference "would not enter into any treaty, agreement, arrangement or understanding, either with one another, or individually, or collectively, with any Power or Powers, which would infringe or impair these principles."

In the light of experience, it was deemed important that there should be a more definite statement of what was connoted by the "Open Door" or the principle of equal opportunity, and accordingly the Conference adopted the following resolutions:

"I. With a view to applying more effectually the principles of the Open Door or equality of opportunity in China for the trade and industry of all nations, the Powers other than China represented at this Conference agree"(a) Not to seek or to support their nationals in seeking any arrangement which might purport to establish in favor of their interests any general

superiority of rights with respect to commercial or economic development in any designated region of China;

"(b) Not to seek or to support their nationals in seeking any such monopoly or preference as would deprive other nationals of the right of undertaking any legitimate trade or industry in China or of participating with the Chinese Government or with any local authority in any category of public enterprise, or which by reason of its scope, duration or geographical extent is calculated to frustrate the practical application of the principle of equal opportunity. "It is understood that this agreement is not to be so construed as to prohibit the acquisition of such properties or rights as may be necessary to the conduct of a particular commercial, industrial or financial undertaking or to the encouragement of invention and research.

"II. The Chinese Government takes note of the above agreement and declares its intention of being guided by the same principles in dealing with applications for economic rights and privileges from Governments and nationals of all foreign countries whether parties to that agreement or not.”

There still remained the efforts of nationals, as distinguished from governments, in derogation of the Open Door principle, to create for themselves spheres of influence in China in order to enjoy mutually exclusive opportunities. This sort of endeavor the Powers agreed to restrain by resolving:

"Resolved, That the Signatory Powers will not support any agreements by their respective nationals with each other designed to create Spheres of Influence or to provide for the enjoyment of mutually exclusive opportunities in designated parts of Chinese territory."

It was also apparent, in connection with the particular subject of railways, that safeguards should be erected against practices of unjust discrimination, although there was no intent to intimate that any unfair discrimination lay at the door of China. Accordingly the Conference took action as follows:

"The Chinese Government declares that throughout the whole of the railways in China it will not exercise or permit any unfair discrimination of any kind. In particular, there shall be no discrimination whatever, direct or indirect, in respect of charges or of facilities on the ground of the nationality of passengers or the countries from which or to which they are proceeding, or the origin or ownership of goods or the country from which or to which they are consigned, or the nationality or ownership of the ship or other means of conveying such passengers or goods before or after their transport on the Chinese railways.

"The other Powers represented at this Conference take note of the above declaration and make a corresponding declaration in respect of any of the aforesaid railways over which they or their nationals are in a position to exercise any control in virtue of any concession, special agreement, or otherwise."

The agreements evidenced by these Resolutions, and constituting a Magna Charta for China, were embodied in the Treaty signed on February 6, 1922. In this Treaty it was also provided that the Contracting Powers agreed fully to respect Chinese rights as a neutral in time of war to which China is

not a party, and China declared that when she was a neutral she would observe the obligations of neutrality.

Again, in order to aid the carrying out of these stipulations of the Treaty, provision was made for consultation among the Powers concerned with respect to their application. It was provided:

"The Contracting Powers agree that, whenever a situation arises which in the opinion of any one of them involves the application of the stipulations of the present Treaty, and renders desirable discussion of such application, there shall be full and frank communication between the Contracting Powers concerned."

This involves no impairment of national sovereignty, no sacrifice of national interests, no provision for agreements reached apart from the constitutional methods of the respective Powers, but a simple opportunity for consultation, examination, and expression of views whenever any question under the specified stipulations of the Treaty may arise.

It is believed that through this Treaty the Open Door in China has at last been made a fact.

BOARD OF REFERENCE

In order further to provide a procedure for dealing with questions which might arise under the provisions of the Treaty, relating to equality of opportunity and unfair discrimination in railroad service, a Resolution was adopted providing for the constitution of a Board of Reference, which would furnish a facility for investigation and report. The Resolution was adopted in the following terms:

"Desiring to provide a procedure for dealing with questions that may arise in connection with the execution of the provisions of Articles III and V of the Treaty to be signed at Washington on February 6th, 1922, with reference to their general policy designed to stabilize conditions in the Far East, to safeguard the rights and interests of China, and to promote intercourse between China and the other Powers upon the basis or equality of opportunity;

"Resolve that there shall be established in China a Board of Reference to which any questions arising in connection with the execution of the aforesaid Articles may be referred for investigation and report.

"The Special Conference provided for in Article II of the Treaty to be signed at Washington on February 6th, 1922, with reference to the Chinese Customs Tariff, shall formulate for the approval of the Powers concerned a detailed plan for the constitution of the Board."

It will be observed that this Board, which is intended merely as a board of inquiry, is not yet constituted, and the recommendations of the Special Conference, with respect to its constitution, must be submitted for the approval of the Powers, which, of course, must act according to their constitutional methods in the adoption of any agreement containing a detailed pla

ALIENATION OF TERRITORY

In connection with the presentation by China of the principles asserted in behalf of her territorial and administrative integrity, China placed upon the record of the Conference the following declaration:

"China, upon her part, is prepared to give an undertaking not to alienate or lease any portion of her territory or littoral to any Power."

It was proper that to China should be given the opportunity to develop in the Conference those questions which more intimately affected her integrity and sovereignty, and her Delegation took occasion to indicate fully, and very ably, certain grounds of complaint which China had against various practices.

EXTRATERRITORIALITY

By treaties between Great Britain and China, dated September 5, 1902; between the United States and China, dated October 8, 1903; and between Japan and China dated October 8, 1903, these Powers agreed to give every assistance towards the attainment by the Chinese Government of its expressed desire to reform its judicial system and to bring it into accord with that of western nations and declared that they were also "prepared to relinquish extraterritorial rights when satisfied that the state of the Chinese laws, the arrangements for their administration, and other considerations, warrant" them in so doing. In the light of these agreements, and taking into consideration existing conditions in China, it was resolved by the Powers in the Conference as follows:

"That the Governments of the Powers above named shall establish a Commission (to which each of such Governments shall appoint one member) to inquire into the present practice of extraterritorial jurisdiction in China, and into the laws and the judicial system and the methods of judicial administration of China, with a view to reporting to the Governments of the several Powers above named their findings of fact in regard to these matters, and their recommendations as to such means as they may find suitable to improve the existing conditions of the administration of justice in China, and to assist and further the efforts of the Chinese Government to effect such legislation and judicial reforms as would warrant the several Powers in relinquishing, either progressively or otherwise, their respective rights of extraterritoriality;

"That the Commission herein contemplated shall be constituted within three months after the adjournment of the Conference in accordance with detailed arrangements to be hereafter agreed upon by the Governments of the Powers above named, and shall be instructed to submit its report and recommendations within one year after the first meeting of the Commission. "That each of the Powers above named shall be deemed free to accept or to reject all or any portion of the recommendations of the Commission herein contemplated, but that in no case shall any of the said Powers make its acceptance of all or any portion of such recommendations either directly or indirectly dependent on the granting by China of any special concession, favor, benefit or immunity, whether political or economic.

"ADDITIONAL RESOLUTION.

"That the non-signatory Powers, having by treaty extraterritorial rights in China, may accede to the resolution affecting extraterritoriality and the administration of justice in China by depositing within three months after the adjournment of the Conference a written notice of accession with the Government of the United States for communication by it to each of the signatory Powers.

"ADDITIONAL RESOLUTION

"That China, having taken note of the resolutions affecting the establishment of a Commission to investigate and report upon extraterritoriality and the administration of justice in China, expresses its satisfaction with the sympathetic disposition of the Powers hereinbefore named in regard to the aspiration of the Chinese Government to secure the abolition of extraterritoriality in China, and declares its intention to appoint a representative who shall have the right to sit as a member of the said Commission, it being understood that China shall be deemed free to accept or to reject any or all of the recommendations of the Commission. Furthermore, China is prepared to cooperate in the work of this Commission and to afford to it every possible facility for the successful accomplishment of its tasks."

FOREIGN POSTAL AGENCIES IN CHINA

The following Resolution was adopted by the Conference in relation to foreign postal agencies in China:

"A. Recognizing the justice of the desire expressed by the Chinese Government to secure the abolition of foreign postal agencies in China, save or except in leased territories or as otherwise specifically provided by treaty, it is resolved:

(1) The four Powers having such postal agencies agree to their abandonment subject to the following conditions:

(a) That an efficient Chinese postal service is maintained;

(b) That an assurance is given by the Chinese Government that they contemplate no change in the present postal administration so far as the status of the foreign Co-Director General is concerned.

(2) To enable China and the Powers concerned to make the necessary dispositions, this arrangement shall come into force and effect not later than January 1, 1923.

"B. Pending the complete withdrawal of foreign postal agencies, the four Powers concerned severally undertake to afford full facilities to the Chinese customs authorities to examine in those agencies all postal matters (excepting ordinary letters, whether registered or not, which upon external examination appear plainly to contain only written matter) passing through them, with a view to ascertaining whether they contain articles which are dutiable or contraband or which otherwise contravene the customs regulations or laws of China."

ARMED FORCES IN CHINA

The following Resolution was adopted in relation to foreign troops in China, including police and railroad guards: