893.102S/1790: Telegram

The Consul General at Shanghai (Gauss) to the Secretary of State

350. Reference my No. 345, May 4, 5 p.m., concerning call made yesterday by Japanese Consul General in regard to revision of the land regulations and reorganization of the administration of the International Settlement, Japanese Consul General in a statement made yesterday to the press here is reported to have said, [Page 36]

“It is difficult from both the practicable and legal point of view to achieve a fundamental solution of the problems concerning the International Settlement without taking into consideration the land regulations which form, so to speak, the construction [constitution] of the Settlement. Therefore, in my visits today, I made concrete proposals for the reform of the land regulations. We may therefore say that the so-called Settlement question has now entered its last stage. In view of the fact that the real power in the Settlement rests with the British who have American support, I visited the Consuls General of those two powers first with a view of impressing upon them our views. As a reform to the land regulations would require the unanimous approval of the Consular Body, it may turn out to be rather difficult, but I believe that if Britain and America are induced to share our views the other nations will follow suit. Now that we have raised the issue we cannot give up without achieving results. We are determined to bring all the countries concerned into agreement with us. It is our good fortune that the Italian Consul General, the Senior Consul at present, is in favor of a reform of the land regulations.”

Repeated to Chungking, Peiping. Air mail to Tokyo.

Gauss