500.A 4 e/480: Telegram
The American Delegation to the Secretary of State
[Received 3:05 p.m.]
Conference 14. Your telegram No. 5 of November 30, 6 [4] p.m. We fear situation here is not fully understood by the French Ambassador. He indicates we are making all the concessions to the Chinese, while the Chinese delegates say we are taking the lead in driving too hard bargains. Our attitude is shown by the reports you have. As China is in a state of revolution it is obvious that we cannot treat with her as we would with a nation. Our view is that we must get the very best offer the Chinese can be persuaded to give us and then decide which we prefer, their offer or the denunciation of all the treaties and the chaos that would result. Now we are waiting for China’s statement on her unsecured debts and for her definition of likin. If the Chinese will give a satisfactory definition of likin so that double burdens will not be placed [Page 884] on foreign goods, we think that the tariff rates proposed for tobacco and other commodities would not be prohibitive and that it would be better for us to accept the schedule than to risk the results if we take too controversial a stand. We shall continue to insist that likin be abolished as a prior condition to conceding effective tariff autonomy, but the chance of likin being effectually abolished by China is small and we might be unable to enforce the carrying out of her agreement to do so. For that reason if the definition of likin is satisfactory and if China will agree to deposit a portion of the customs revenue allocated to the liquidation of unsecured debts with some foreign custodian we might waive the precedent condition regarding likin.
We had a visit yesterday from Admiral Tsai Ting-kan who maintains liaison between the American and Chinese delegations. He called to inquire as to the truth of reports that some delegations were beginning to consider the advisability of withdrawing from the conference or suggesting its postponement because of the existing disturbed political conditions. He was informed that we had heard nothing of this kind and that our delegation did not have in mind any such move. This statement seemed to relieve him. He observed that for the foreign delegations to make any move toward adjourning the conference would be playing directly into the hands of the radical element in China who would like to see the conference broken off. He added that it was the plan of the Chinese delegation to convene the committees from time to time so as to keep the conference going and enable it to survive the present period of uncertainty in political affairs until the present Cabinet should be re-formed,83 when greater progress could be made.