FOR THE P~SS 

REF ID:A67368 

DEP Ji_RTMEIJT OF STATE 

~i.Ai 17, 1809 

:No. 194 

CONFIDENTIAL 

FUTURE 

NOTE 

RELEASE 

DATE 

CONFIDENTIAL RELSASE FOR P:JBLTCATION r:J l-mRlJING IJEWSP.APERS 

OF TFURSvAY, MAY 18, J933. NOT TO BE PREVIOUSLY 

PUBLISHED, gjl_OTl!-:D Ii"IlC:tr OR USED IP .ANY WAY. 

Upon instruction of the Department of State, the American 

Ambassador at Tokyo, Ur. Joseph C. Grew, today deli~iered the 

foJlowing Aide Memoire to the F0reign Office: 

"AIDE llfJEMOIRE 

"Reference is made to the alde-memoire which th~ 

Japanese Vice Min~ster for Foreign Affairs hand~d to the 

American Ambassador at Tokyo on May 3 in regard to the 

question of revision of the Land Regulations of the 

Internationr-tl Settlement at Shanghai and to the question 

of modifying and improving the administrative machinery 

of the International Settlement. 

"The aide-memoire contains roferericc to the date on 

which tho Land Regulations now in force ~n the International Settlement o.t Shanghai became effective and contains the affirmation that the existing administrative 

structure is in many respects ill adapted for dealing with factors in the situation which has been steadily evolving during the pa.st seventy and more years and 

which has undergone a radical change in more reoent 

times. 

11 The Government of the United States would be ready, 

as it has been in the past, to become a party to friendly and orderly negotiations properly instituted and conducted 

regardins any needed revision in the Land Regulations of 

t:he International Scttleiaont at ShangJ.1ai. The Government 

of the United States is constrained to point out, however, 

that conditions in the Shanghai area are, from its viewpoint, so far from normal at the present time that there 

is totally lacking a basis for a discussion looking toward 

an orderly settlement of the complicated problems involved 

@'pp roved for Release by NSA on 04-10-2014 pursuantto E .0. 1352a which 
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which wouJ.d be rcasona'oly fair to all concerned. 

"~Vi th reference to the question of tho Chinese courts 

vrhich functioi1 in the> Intci·nationo.1 Settlement, it may be 

pointed out thn.t t~.Loi:.:e courts were established and their 

status fixed und~r a multilatdral agreement to which the 

United Stutes Government was a party and that the observations made in regard to possible revision of the Land 

Regulations apply also to the question of these courts. 

11 With rogRrd to the oyster.a of voting in force in th("! 

mu..nicipal elections und public meetings of the International 80ttlene11t, it 111n.y be observed that under the 

Land Regulations thc=e is no discrimination amongst the 

various foreign rate pay~.i:-s, tho minj r.m.1m requirement for 

voting qualification being the payment of municipal 

:rates on the basis of an nse.essed rental of 500 tacls 

(o.pproxi'l?lutely Aeveu hu.."ldred dollars Chinese currency) 

per annum. Under this systcct the Jn.panese comro.uni ty 

enjoys a largo ar.d increasingly important vote, a vote 

in fuct far greater in proportion to the total vote 

thau the proportion rhich the G0nerul municipal rates 

and land to.xes paid by ti1c Ja-pancse comrmnity boar to 

the total of the m1micipal rates a.nd la.nd taxes paid 

in the International Settlement. Ja.par.ese nationals 

are represented on the Municipal Council and are employed in the various departments of the ~Iunicipal 

Government. 

11 \Vi th regard to the question of modifying and improv- ing the adtrlinistrati ve machinelj· of the International 

Settlement, the Govcnime:it of tho United States believes 

thut the Japanese Gover.i.ment will recogntze that those -conc~rned r.ith the aeminiatration of the International 

Settlement ::iavl), throughout the Settlement's ~li story, cffoctcd many adjustments to mtJet ci:lr.mgi.ng conditions 

and the Gov~rn.T.ent of t-ne U.aj ~eC. Sta7.es io confident 

tha.t t:!.1c authori tics of the Settle~nm1t \7ill continue 

to make every effort to adjust tbc admjnistrative machinery of the Settle~ent and the practices there-

-of to meet fair and reaoor~nble desLrt:>S on the part of Japan o.nd Jupnncse interests. 

11 Wit:ti reference to the statement in the Japanese aidemernoire in regard to the need for closer cooporo.tion between the Scttler..1ent authorities arid tlie regimes vrhich 

.-exist in the lower Yangtze Valley with Japanese military 

suppoxt, it nay be observed that, in the absence of the 

duly 

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duly const:ituted and recognized Government of that 

area, the Settlement authorities have made and are 

making every effort to deal with the realities of 

tho very difficult situation confronting them) and 

tho Governmunt of the Um. tad Statos feels that those 

authorities are entitled to expect every consideration 

from Japanese civil and military agencies. It is 

pertinent to point out in this connection that since 

the earliest days of the International Settlement it 

has necessarily been the policy of the Settlement 

authorities, Quring periods of disturbance in the surrounding areas, to avoid involvement in controversial 

matters arising from causes beyond the Settlement 

boundaries. This aloofness is inherent in the very 

international character of the Settlement. And 

logically flowing therefrom is the premise 

·that no one power having interests in the Settlement, 

however extensive they may bo, should take advantage of developments which have their origin elsewhere to 

prejudice the international character of the Settler.aent. 

"The Government of the United States has been impressed with the efficiency and energy with which the 

Settlement authorities have, notwithstanding the extreme bitterness and tense atmosphere prevailing at 

Shanghai, kept disorder and lawlessness to a minimum 

within that part of the International Settlement which 

is under their effective control. 

11 The Government of the United States refers again 

to the efforts which the authoritieo of the International Settle~ent have been making and are continuing 

to make to perform their normal functions, efforts 

which have recently been seriously nandicapped and 

rendered more difficult by lawless activities in areas 

contiguous to tne In~ornational Settlement and by refusal on the paxt of the Japanese military forces to 

return the Settlement area lying north of Soochow 

Creek to the effective control of the authorities of 

the International Settlement. 

11 Tlle Government of the United States urges upon the Jarancse Government the consideration that a smooth 

working of the administrative machinery of the Settlement would be promoted by a frank recognition on the 

part of the Japanese Government of the excellent work 

which has been and is being done by the Settlement 

authorities and by the prompt restoration to those 

authorities of complete control over the Settlement 

area extending north of Soochow Creek. 

11 In conclusion, the Government of the United States 

observes that the great cosmopolitan center of Shanghai has ceen developed by the nationals of many countries, 

to the mutual advantage of all. In this development the International Settlement has played a very important 

part and any question affecting the welfare or status 

of the Settlement is of inevitable concern to many 

countries, 
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countries, incluU.ing the United States. Wi ih rei_,:u·d 

to the revision of the Ldnd Regulations, the Government 

of the United States is, as indicated above, of the 

opinion that this is a question which should await the 

development of mure statle conditions. But with regard 

to adm1nis"til'c-1ti ve practice in the Settlement, m!.ln~ adJUstments have been made to meet the requirements of 

changing conditions, and tho Government of the Unlted 

States is confident that the Settlement authorities 

are prepared to continue their best ~fforts toward 

meeting any reasunable requests for further adjustments. 11