be the concern of the respective Governments, the American Delegation would withdraw Article IV from its draft Resolution.

Chinese Statement. Expressing the general attitude of the Chinese Delegation towards the proposed Resolution, Mr. Sze said:

He could do nothing better than to refer to the second of the proposals presented by the Chinese Delegation on November 16, namely: "China, being in full accord with the principle of the open door or equal opportunity for the commerce and industry of all nations having treaty relations with China, is prepared to accept and apply it in all parts of the Chinese Republic without exception." In this proposal the position of the Chinese delegation was put very simply and clearly, and he did not believe there was any use in his taking up the committee's time by offering any further explanation of it.

He desired, however, to say one word in regard to " the open door." The rendering of that expression into Chinese, some years ago, had given rise to some doubt in the minds of those who only read Chinese. He would, therefore, like to state that "the open door" did not mean the opening up of all parts of China to foreign trade, commerce, and industry; he only said this because of the misapprehension in the matter which had existed in China.

In regard to Article I b, his esteemed colleague, Baron de Cartier, had suggested on the previous day that the words "provincial government" be changed to "local authority." The procedure at present observed in China by the central Government with reference to concessions given by provincial authorities, he stated, would remain the same irrespective of which phrase was used, and this practice was too well known to need further elucidation.

In regard to Article III he wondered whether it would not be better to eliminate the words "in principle." If the committee reached an agreement it was probable that it would be on something definite. He only made this as a suggestion in the belief that it would make the paragraph more clear.

He had remarked a few minutes before on the great importance of the principle of "the open door," which had also been dealt with in the third of the "Root Resolutions" as follows:

"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." The committee would note that in this resolution-which had been accepted by all the powers represented at the table-that the words “establishing and maintaining" were used. His knowledge of English was limited, but he thought that the two words had different meanings to establish, meaning to create, and to maintain, meaning to continue in operation; taken together, these two undertakings could mean nothing else than the bringing into existence of a régime under which the principles of the "open door" could be effectually applied. It therefore seemed that Section IV of the draft resolution could safely be adopted. Questions in regard to concessions had arisen in the past and would doubtless arise in the future. If questions should arise in the future it would be better, as the chairman had remarked, that the negotiations among the powers should not be confined to diplomatic notes; it would do no harm to either party in such a dispute to have it referred to a friendly body such as was provided for in Section IV for adjustment.

The Committee then unanimously approved the three articles of the Resolution in the following words, which later, with only the necessary verbal changes in order to put them in treaty form, were incorporated into the Nine Power Treaty Relating to the Principles and Policies to be Followed in Matters Concerning China, signed on February sixth:

I. With a view to applying more effectually the principle 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.

III. The powers, including China, represented at this conference agree in principle to the establishment in China of a board of reference to which any question arising on the above agreement and declaration may be referred for investigation and report.

(A detailed scheme for the constitution of the board shall be framed by the special conference referred to in Article I of the Convention on Chinese Customs Duties.)

At the last (thirty-first) meeting of the Committee of the Whole at which the draft of the various treaties were given final consideration before being printed preparatory to their submission for formal approval by the Conference in plenary session, Dr. Koo said that he understood, and he was confirmed in his understanding by the Chairman, that the principle of equal opportunity as provided for in the contemplated treaty had reference to the Powers among themselves and not to China upon the one side and the Powers upon the other.

The relation of the Open Door to the Chinese Railways is discussed in the next chapter.

'For purposes of convenience it will be appropriate to quote the following excerpts from the other agreements reached by the Conference in which the Open Door doctrine is expressly declared or applied:

Nine Power Treaty Relating to Principles and Policies to be Followed in Matters Concerning China. Article I, Section 3. "The Contracting Powers, other than China, agree . . . . 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."

Article V. "China agrees that, throughout the whole of the railways in China, she will not exercise or permit 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 Contracting Powers, other than China, assume a corresponding obligation 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.

Nine Power Treaty Relating to Chinese Customs Tariff. Article V. "In all matters relating to customs duties there shall be effective equality of treatment and opportunity for all the Contracting Powers."

Resolution Regarding a Board of Reference. Preamble. [The Nine Powers] . . . . 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 of equality of opportunity" resolve, etc.

Declaration Concerning the Resolution on Radio Stations in China. The Powers other than China . . . . give notice that the result of any discussion arising under pargraph 4 must, if it is not to be subject to objection by them, conform with the principles of the open door or equality of opportunity approved by the Conference."

Statement of Chinese Delegation Regarding Chinese Railways.

It will be our policy to obtain such foreign financial and technical assistance as may be needed from the Powers in accordance with the principles of the Open Door or equal opportunity."

CHAPTER XVII

CHINESE RAILWAYS AND THE OPEN DOOR

Unification of Railways. There had been some expectation that the Powers would discuss their future policies with regard generally to the railways of China, and especially as to the amount and character of the foreign control over their administration and operation that should be sanctioned. In fact, however, the only direct reference to this important subject was the resolution that Secretary Hughes presented to the Committee of the Whole at its twentieth meeting, and adopted at its twenty-first meeting. This resolution ran:

The powers represented in this conference record their hope that to the utmost degree consistent with legitimate existing rights, the future development of railways in China shall be so conducted as to enable the Chinese Government to effect the unification of railways into a railway system under Chinese control, with such foreign financial and technical cooperation as may prove necessary in the interests of that system.1

Mr. Sze stated the position of the Chinese Delegation regarding this resolution as follows:

The Chinese Delegation notes with sympathetic appreciation the expression of the hope of the Powers that the existing and future railways of China may be unified under the control and operation

1

'At Mr. Sze's suggestion the word "cooperation" in the last clause was changed to assistance." This change Mr. Sze said, would facilitate the rendering of the resolution into the Chinese language.