Evening Star Newspaper, January 18, 1922, Page 4

> FULL TEXT OF PARLEY DISCUSSION UPON ISSUE M Hughw?k&énlé Definite Plan to Bring Equality of Opportunity -and Explains The following is the official state- ment of the far eastern committee of the arms conference, issued at the @lose of yesterday's meeting: Eighteenth meeting of the commit- tWwe on Pacific and far eastern ques- tions, January 16, 1922 (continued). After the adoption of the resolu- in Detail. powers represented on the committee had given adherence. That, however, was not a mattér which had embarrassed the commit- tee in dealing with the propositions heretofore advanced; for example those very broad provisions of the resolution, already adopted, respect- ing the sovereignty, ciples which had been laid down, if it indicated a little more definitely its understanding upon this point. He quite agreed as.to the im- portance of making a full r¢ with regard to particular & the conduct of Which was sistent ‘with the mainte! principle, and would like vefy m to have the matter of possible ma- chinery further ‘discydséd, ' ° He thought, as Re had said a'moment be- fore, that it would be very -helpful if the committee could have some kind of arrangement by which in this mat- ter and in others it could avold con- troversies, or at least have some way of practically settling them. - At this point the meeting adjourhed until January 17, 1922, at 3:30 p.m. MR. HUGHES’ RESOLUTION. Presents His Revised Distt for Committee Consideration. ‘The nineteenth meeting of the com- mittee on Pacifio.’and far eastern the independence | questions met this afternoon, January and territorial integrity of China, and {17, 1922, at 3:30 o'clock: ig the Pan- finued the -principle. There was, however, a|sible, he thou&hl the task would be distinction between them. Clause (2) | found impossible, and that experi- was not limited to the mere seeking |ience woald soon show inability to of a concession which might be in |foresee all the contingencies that ‘the nature of a monopoly or prefer- | might arise. ¢ ence with, respect to a particular( The open door was a very import- sphere of enterprise; it had a wider |ant principle, but it should be re- 'range. It took into account the|membered that is was on open door facts with which all are famillar in|door and not a shut door. The very connection with the recent history of | fact that 48 was an open door in- China. It provides that 'the powers|dicated that it was an opportunity other than China represented at the|for enterprise, not an obstacle - to conference should not seek, nor sup- |enterprise; the intent was to “pre- port their nationals in seeking, any|serve equality of opportunity for arrangement which might purport to |legitimate enterprise. Every en- establish In favor of their interests|terprige, of course, was of a particu- any general superiority of rights|lar nature if it was within the legiti- with respect to commercial or eco- |mate range that was contemplated. nomic development in any designated | In most cases it could readily be region of China. That was not lim-|detected when the particular grant ited to the question of a particular |or concession transcended the limits concession or enterprise, but it had|that it was sought to"establish- and the purpose of precluding tHe efforts|operated not simply as an opportunity, by which, in a designated region, one|put as a rule of unfair. exclysion ‘of power or the nationals of that power | others, 1In the great majority of might have a superior. position With |cases there would not be the slight- respect to enterprises' broadly. It|est dificulty In recognizing whether had direct relation to what has been |the particular. enterprise lay within known in the past ks spheres of in-|or without the application of the terest which might be stated o he| principle. spheres of exclusion of other inter- B ! ests. In other words, it negatived hetadmittedrthatithers wonll fiict with some other concession, there would be an opportunity to see what the conflict amounted to, what the merits of it might be, and to endeavor to obtain an/adjustment. Now, what was the harm in that? No power, or party, was compelled to submit any- thing. If it was referred, no power was bound by the report. It was merely information and advice. Sup- pose here was an existing conces- sion and another concession was deemed to conflict with it? What b to be done about it? What did do now about it? Notes were written; answers were received; grounds were “stated; objections were advanced in reply to these grounds, and these literary efforts went ol for an indefinite time, with no re 1t And why were there no re- Sometimes because there was 10 adequate machinery to obtain re- sults. ’ chairman saw™fo reason why, it ‘was.valuable, it'should be said that “We ‘will have its benefits concessions that exist naxt yea we will not have the benefit of it as to . concessions that exist now.” If it 'was a good thing with regard to e -year ENGLAND AND ITALY ' ACCEPT NEW DRAFT Poivers Would Establish Board of Reference ~To Adjust All Differences—Special - Rights Barred. legitimate rights-and opportunities. | and to seek an amicable and fair adjustment of all difficulties that might aris It should also be observed that in| paragraph 1V, as distinguished from paragraph III, it was the parties who ! were to submit their questions to the board of reference. There Was no compulsion upon the parties; they did not have to submit if they did not gation that had not spoken. The fourth article of the resolution did present a distinct matter, and could be dealt with as such. He then asked-if the committee desired at this time to deal with thé first three articles. - Baron de Cartier said that in his opinion there was a slight obscurity in the wording of paragraph (b), article 1. The reference to ‘“pro- vincial government,” he felt. might = ted the | American bullding, erhaps many cases, which|a gonflict of concessions for tions regarding the revision” of the | the ptatement which relaled (0 (0| g cussion begun: the day before on |the endeavor to secure, not a Par-|were mot D e Y wonta be lm | 195, he thought it was & Eood thing | want to; there could be no impair- | possibly be taken as a reflection on ticular concession of grant. or the | ogsible to define them In advance.| with regard to a conflict of conces-|ment of any legitimate vested rights.i{the completeness of the authority of ‘Chinese tariff and customs duties the <hairman (Mr. Hughes) suggested that the committee proceed to the mext topic upon the American agenda —i. e, “the qpeqn door,” or equality ©of commercial’ and industrial oppor- tunity. The chairman said that this subject had an intimate connection with the .topic which immediately followed it—namely, concessions or preferential econemic privileges. The ‘committee might possibly make un- mecessary the discussion at length of that in the application of these pAin- ciples, there might easily be tran- sactions which would give rise to dif- it would be highly there should be opportunity for con- sultations, . understanding. Main Point of Resolution. | selves or their nationals to establish the subject of the open door in China. e chairman, Mr, Hughes, said that the previous day he had taken the i 4 nd as to which | liberty of proposing a resolution for L o mena e “highly *Qesirable that|the purpose of stating a little more deflinitely t! prin iple of the open interchange of |door or_equality of opportunity in views, and for efforts to reach a clear | China. Without reviewing what took place at that time, it was sufficient to say that in the light of the sugges- tions then made, and after consulta- The main point of this resolution|tjon with experts of the delegations!to obtaln a general superiority of was this: That the powers agreeing|who had special familiarity with con- | rights wi to_ it would not undertake for them- | ditions in Chna and with the history}a designited region, but with theconnection with paragraphs (a) and of the application of the open door facility for conducting a particular enterprise, whatever the scope of that enterprise might be, but a status lwnh respect to a designated reglon Theretore it was of Importance not simply to leave the matter to diplo- matlc interchanges, but to provide some tacility for discussion ex- plication of " the particuiar case. S ar, owever, as the statemen! of the open door principle. the resolution itself was concerned, Now, clause, para- igraph (b), dealt with cases whick did | e, WOUId Yelcome any tmprovemert. not rise to the dignity of an endeavor | siderable ‘study on the part of ex- perts, and this particular form of respect to development in :gtatement had been taken because in which would give general superiority or opportunity and thus confiict with jmore limited, yet still objectionable,|(b) it was deemed advisable to sug- sions, in the same way, in the year 1922, Sarraut Fears Changes. Mr. Sarraut said that he was per- fectly satisfied by the explanations glven by Mr. Hughes with regard to the first two questions put by him. However, he feared that the changes proposed for article IV might give rise to certaln abuses. It was to be feared, In fact, that any contract might be questioned by the mere fact that a new contract had been granted on the same subject, possibly in bad 8tlll, there was a facility to which, in case of conflict, they could re. sort in order to bring out the facts and to aid through conciliation and! examination in bringing about, if ible, an adjustment. It was thought that would be an advantage. Still, if there was objection to that, he was entirely willing to have the paragraph modified so that the words “with those of another concession or" should be omitted, and the paragraph limited to the case where a conces- sion appeared inconsistent with the the central government of China; and for this reason a wording shouid be found conveying the same idea and yet omitting the word “provincial,” to Which he objected. ‘The chairman said that, of course, this was Intented to refer to those transactions which would have to do with political subdivisions, not in any sense to any opposition to the central government. There were matters which had exclusive relation to provincial governments, There were categories of ‘public enterprise which were ‘un- Particular details in_ dealing withdin regions of China a general supe- | principle, @ resolution along the lines| endeavor to obtaim such & monopoly | geat, i s Principles of the agreement. He as-|9er” e cunecrinion’ of provinclal P e fects I 11 were o adopt, | Horlty of rights. Of cotrse, anything | of that previously suggested was now | or preforence as would deprive Na- | Sensrar staioment. the chrss of dnder: | o ifs With the sole object of having | sumed that referred to the agreement | gouernments. with fespect to Shich the Dy agreement of the powers repre- |the committee did would be inter-}presented. In order that the pointe|tionals of other powers of the right|takings which it was not desired to| present government of China could | g5 declaration relating to the oben |nationals of the " interested powers sented, a statement of principle in amplication of the so-called “open door” principle. . The committee had already resolved that it was the firm intention of the -powers here repre- sented to.use their influence for the purpose of effectually establishing and maintafning the principle 'of | equal opportunity for the commerce and industry of all nations through- out the territory of China. It was manifest that the granting of special concessions ot & monopolistic or pref- .erential character, or which secured = general superiority of rights for one power to the exclusion of equal opportunity for other powers, was in .opposition to the maintenance and application: of_this principle of equal preted in_the light of history, and he assummed that it might be difficult (altl:ough™ he was not desirous to press this particular form of ex- pression upon the delegates) to find a form which. would more clearly i give the idea of what had interfered with the application of the open door principle. In other words, there was & great difference between a par- ticular enterprise, a particular under- taking of commerce or indsutry, and the assertion, or the endeavor to ob- tain & position from which it could be asserted, that one power or its nationals had a general superiority of right in any region of China. With regard to the point patents, trade marks, copyrights which it made might be suitably em- phasized, he asked permission to read it, as follows: The Open Door fa China. (Revised Draft of Resolution.) . With & view to applylng 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 that | superiority of rights with respect to,erties or rights as might be neces- ‘and | commercial or econamic development |sary to the conduct of a particular ed region of China, to undertake legitimate trade or in-|exclude, wi it was desired should dustry in_China or of participating | berreciy pr;{:‘;’;cfized. and ,at the same ! with the Chinese government or With | dime to’ ihdicate the.(wé classes of any provincial government in any|effort which it was designed so far category of public enterprise which.!as Tossible absolutely to prevent. by reason of its scope, duration or geographical extent, was caltulated Three Important Polnts. The first class included those which to frustrate the practical applica- endeavored to establish over a tion \of the principle of equal op- portunity. designated region a superior privilege All Rights Respected. to the exclusion of powers or their That was to be read in connection ( Nationals.. The second was a mo- with the concluding clause of the)DNOPOLY or preference not inherent in first section of the resolution, that it|® Particular legitimate undertaking, Nas mot to be so construed as tolbut embodying exclusion . of th powers or their nationals from fields prohibit the acquisition of such prop-| 79 industry and ecomomic develop- ment. There was in paragraph (b) the suggestion that the consideration not be suspected of taking any such steps: but the government ~might change. Moreover, there was mention ‘in_ the first article _of .concessions granted by the provincial govern- . ments. Every one knew that there were now several provincial govern- ments which might be .tempted to evade the central authority and which might purposely k - complications by_questioning existing rights. The chalrman sald he was very 'much gratified at Mr.: Sarraut’s ac- quiesence in the pravisions of the resolution in_the first three articles and that Mr. Sarraut had found satis- factory the explanation which he had endeavored to give upon those points. ‘With respect to article IV, Mr. 3 door, and that, with that change, would be taken to mean that the parties that were interested in the concession and those who were in. terested in the maintenance of th open door principle which was deem- ed to be affected in its application by the~concession would be privileged to submit the matter to the board of reference. Mr. Sarraut felt that the explan: tions given by Mr. Hughes with re- gard to the fourth article were of such a nature as to confirm his fears that existing rights might be com- promised. g This would mean the introduction here, in this new sort of legislation which the committee was attempt- ing to establish, of principles which might have concern, and it was rather difficult, in carrying out the principles under discussion, to take no cogni- zance of that sphere of local activity which might have a very important relation to the open door. Sir Robert Borden suggested that perhaps “provincial authority” might be_substituted. u‘Baron de Cartfer sald he preferred at. ‘The chairman agreed. Baron de Cartier said he did not ltke the word “provincial,” but that “local authorities” would be agreeable. ‘This phrase was substituted for “pro- vincial government.” 5 on Shidehara stated that so far as he had been able to examine the Pportunity. In order that this mat- B nase | in any designate i icommercial, industrial,or financial $ 107 might ba brovght before the com- | TS BELS o e et oo, | i(b) Not T soek. of to'support thelr | Snderiaking or fo'the ehcouragement | O£ (e scope, duration or geographical ) Sarraut's susgeations were very Im: | until now had hot been aqmitted to | draft ke found Bimeclt in accord with b ¢ i : e general principles embodied i it. mittee for ‘Alacussion with & View 10| yau of course, well taken. but he|nationals in seeking any tof invention and research. That was| FR(CAL I(ell of an erterprne o f b e Mot chrersl comsideration. | % Fecognized legal status. He meant | vlum Ma,“"'! B s i# possible, of a state-| Jouimed that it was certainly within monopoly or preference as would de- the adoption, if | ‘ment & Yle?:&,tmr,q in_detail than the eneral statement already adopted, e ventured to present for considera- tion a resolution which he did not the intention and, he would suppose, within the form of expression that those particular rights would be em- braced in the particular commercial prive other nationals of the right of undertaking any legitimate trade or industry in China or of participating with the Chinese government or with | to say, paragraph (b) sought to pre- clude efforts by which monopolies or | Bretorences would exclude other na. tionals from legitimate opportunit it did not Intend to prevent par- essential character in the light of the open door principle. He suggested that if there was any phrase that occurred to any one of He had thought the reference to existing concessions would not have quite the effect which Mr. Sarraut seemed to anticipate. In other words, the principle of retroactivity and lhe| principle of revision; retroactivity, because already existing concessions, some of them of long standing, might be attacked before the pronosedl portance of the' subject he desired to be given a little.more time to study it before any action were taken on the draft. r mean to recommend in its precise | nindustrial undertaking with which |any provincial goyernment in any | ticular enterprises, commercial, in- the commlt}ee which would more |if there was an existing concession and | poard. 1t was true that, according to The meeting then adjourned until Phrasing necessarily, but simply 2s| (i was not the purpose of this agree- | category of public enterprise, Of|dustrial or financfal, which did not Clearly point'the distinction obviously | ancther concession was made which|Mr. Hughes' explanation. thero was!January 18, 1922, at 11 o'clock a.m. something concrete for consideration. { ment to interfere. For "'mr?‘eid“ it | which by reason of its scope, 1"']“1:3 have that unfair exciusiveness which | 30US! pru;:l; e :::f";fi ]'d"":‘;"v’;:s l:u“;m::':"fiflx‘:;p: ]‘K"g'y e l;:‘":‘l" no question of an obligatory juris-| s S v there shou cula 5 y - : Dratt of Resolution. were, proposed that there or geographical extent is calcul would make them inconsistent with [ SeR Presented, they would be vers | suppose It more likely that the st But every one hoped that its *The chairman then read the follow- tng: | “Draft resolution on the open door. “with a view to applying more an opportunity to obtain patent rights or copyrights, such as inventors or authors enjoved in this country, or other countries, the fact that any in- ventor or author had that ofpommxu’ and when he made use of {t, accord- to frustrate the practical application of the principle of equal opportunity. It is understood that this agree- ment is not to be so construed as to prohibit the acquisition.of such prop- erties or rights as may be necessary the open door principle. It would therefore be seen, he thought, that there was a point in each of these paragraphs, the one relating to a general superiority of rights with respect to development that there was great difficulty in the formulation, but it had been hoped, without a fruitless effort at specifica- tion, to make a statement of the prin- ciple in a far more deflnite way than concedsion than upon the former, and that instead of being regarded as a facility for attacks upon existing rights, the provision would have the effect of providing an opportunity for authority would be great, and case there would be serious inconvenience for the various parties interested if they refused to submit to investigation. Nevertheless, there was no moral force which would LOCAL TAILORS INVITED. Members of the Washington Mer- chant Tailors' Exchange have been invited to attend the thirteenth an- weftectually the principle of the open law, obtained to that ex- 2 it had hitherto been expressed. inquiry, consideration and explana- 5 e aquality of opportunity for|inS, to the law, oBLeinet in any true O O al ander i‘;la.‘;’.}""'fl,""p.fifl." 5 the Sther| "With regard to Mr. Sarraut's second thont : ';';'_’lff“:"g',pfl’;’,;,"flm, “Ci‘,::’”fig'fl’[ nual convention of the National As- " trade ‘and ndustry of all na- | ShL.® ORYRRLSn of ‘anybody else |mercial, industrial or InAners) BRleC: et b0 B riats on pre: | ducstion: relating to'the function and | WIf a concession. whether it had | ReUYSrInin ion, !cociation of Merchant Tailors of tions, the powers represented In this) who had the same opportunity with (5 c0¥, 1% ng research. ferential character which by reason | WOTK of the board of reference, as|been granted in the past or should Opposes General Reviston. {America _fn Philadelphia, starting Joenficenicas agrae not (o7 8ee respect:tothesanie sort O oFLolE 1L The Chinese @overnment takes|of that character infringed the open- [ o o'(er" 000 16 Mr. Barraut had |be granted in the future was| " Z07 0 00" inat a general re- |J2nuary 31 support their nationals in asserting any arrangement Which might pur- wort to establish in favor of their in- terests any general superiority of wights with respect to commercial or «economic development in any desig- nated region of the territories of China, or which might seek to create any such monopoly or preference as would exclude other nationals from wndertaking any legitimata trade cr under the um;lrulal which were gen- erally applicable. Bu{ if it were said that in any par- ticular province or region of China no one should obtain patents except the nationals of a rticular power or that no one should enjoy the op- portunity to have this or that sort of enterprise save one power, or its nationals, then a situation would be created involving an assertion of an economic preference or superiority of note of:the above agreement and de- clares its intention of being guided by the same principles in dealing with applications for economic rights and privileges from goverments and na- tionals of all foreign countries wheth- er partics to that agreement or not. TIL The powers, inciuding China, re‘)- resented at this conference agree in principle to the establishment In China of a board of reference to which door principle. Neither of these pro- referred to the board of reference; what would be the practical operation of such a plan? nad furnished concerning the_ first | \woul L paragraph of the resolution. These| Which sn wer? sampine ek omith explanations were fully sufficient to| would address Natlonaly their governments, make clear the spirit of the Ameri-|there would be inquiries with respect , can proposals. to action that had been taken, sup In the name of the Italian delega- | posedly, or stated to be, in contra: Inconsistent with the principles of this declaration, then, of course, it dide Invite scrutiny. There was no reason whatever for not approaching, with absolute frankness, the consid- eration of this question. If there was a challenge of any existing conces- sion on the ground that it conflicted with the principles which all had as- serted, what injury could result from an inquiry ithe result of which bound no one; which could not dero- vision of all existing contracts was in no way justified. It was therefore necessary that the text of article IV leave no doubt as to its point. He stated that he could not give a definite | decision at the present moment, and that a more leisurely examination of the text of article 1V was called for. The chairman said that so far as the seemed | ussion had proceeded. it A firm stand is expected to be taken against the proposed increase of $156 duty exemptpion on personal goods brought into this country om the ground that only one-fifth of one per cent of American profit by the exemp- tion, and because the nation’s finan- cial condition urges increase in reve nue rather than decrease. Dye to the scarcity of skilled mc chanics in_the custom tailoring trac a proposal is expected to halt a 4ndustry or from participating with - the above rivilege which would be utterly in- |any question arising on tion he declared that, in accordance | vention of the principle. Of % o3 st = S e4 oty o B enterprise—it belng Sonslstent with the open door, prin; agreement and declaration may with the ideas which they had sub- | the sovereign powers here represent- | £3(C [Om any right: which could not | (8af, e 060 it oeith ahprovas. Ha |t praratiag i othes. . mpit AT o R L P et ene " | ciple. He granted the dificulty of | referred for investigation and report | ported since the first meeting of thef'ed were not going in any way to| {100, C0¥1q alidate nothing, but|of course, did not refer to any dele. frades. mot to be so construed as to pro- hibit the acquisition of such proper- gies or rf fthe conduct of a particular commer- «ial or industrial undertaking.” 8ir Auckland Geddes said: *T should like to say, first, that we Mccept and are in the most hearty mgreement with the purpose of this Zesolution. There are, however, one &r two points, principally drafting ts, on which I would like to in- itiate some discussion. “The first point is this: As the pro- zond resolution stands, it applies to hina, or rather to the Chinese gov- arnment, and through it to Chinese ationals. At least, I read it so. I «do not suppose that that was the in- ::;lll:n"becllllrc !hétlwould have the #ffect of putting Chinese mercha: or Tfiruc;n—" i e Chalrman (interposing): “‘Tha ds _not the intention. ) e stating that precisely. Any improve- Tront that could be susgested would be welcome. -The main point was that question of concessions and monopo- lies and preferential economie privi~ leges, a clear understandimg should, if possible, be arrived at by this con- ference which would promote the friendly relations which existed be- tween the powers represented and the spirit of friendly co-operation which had so happily been in evi- dence. Views of Mr. Balf r. Balfour said: M Bhaprman, I canot help think ing thdt the British delegation h approached the discussion of this pro- posal from = somewhat different standpoint from that which you have just explained. We had thought that the principles on which you have so eloquently dwelt were already com- (A detailed scheme stitution of the board shall be framed by the special conference re- hts as may be necessary to | wnen"i¢ came to dealing with this| ¢ req to in article 1 of the conven- n_Chinese customs duties.) u‘:’ln\'.ole powers, including China, represented at this conference agree that any provisions of an existing concession which appear inconsistent with those. of anothen concession or with the principles of. the above agreement or declaration may be bmitted by the parties concerned o the - board of reference when established for the purpose of en- deavoring to arrive at & satistactory adjustment on equitable terms. Seeks Practical Agreement. The chairman said that the decla- ration in the first article was intend- ed to state with such precision as the subject admitted what the open door principle was understood to be. far eastern committee, they agreed |bind themselves with regard to un- with the spirit of the American pro-|known contingencles, which might posal, for it tended to enforce the|fetter the proper freedom of their application of the principle of the|actiona: but if there was a facility open door. _They wished that all|at hand which could take the matter nations should have equal rignts and | for examination and report as to the facilities to ald in the progress of|facts, it might be supposed that the China, and for this reason they ac- cepted In principle the powers who believed in this princi- proposal | Ple. who desired to have it fairly which had been put forward. s‘nd :on"n“li““l!y -nfued. :o:m de- sire to avail themselves of that fa- ,, Geddes Notes Safeguards. cility and would court the examina. Sir Auckland Geddes said that they [ tion of the matter by a commissiof had had an opportunity of studying | composed of their own representa. the resolution that had been intro-|tives. In other words, the reference, duced that day, and he would lihe|he assumed, ‘would be by govern- t0 say a very few words with re-|ments for the purpose of using this &27d to it. method of obtaining information and Yesterday he had had the honor to|advice, which would not be of an bring before the committee what he | X parte character, but in which all was inclined to think were some |those who might be interested in the deficlencies in the resolution as it|matter would have opportunity to was originally drafted, such as thc|Present their facts. point dealing with the relation of Nothing Coercive in Plan. simply threw a flood of light upon conditions? For Delegates {& Decide. ‘The point-to which he thought Mr. Sarraut's observations applied with the greatest force was not with re- 'Epect to a concession that might be found .to be inconsistent with the Principles stated. but to the case of a concession which would appear to he inconsistent with the provisions of another concession. Whether that case should be embraced in the reso- lution was a matter for the judgment of the delegates. If there were such conflict there would be dificulties in the carrying out of the concessions There would certainly be contro- versies that would arise from the conflict. The quertion was whether it was not desirable to have some means' at hand for an examination course, there was little use in}method of settling any disputes that ° He repeated that there was nothing of the facts, always on the supposi- ————— ~ Zcepted. We understood that|Of “That is not | Phovs was “ho: representative of any|merely referring to equality of op- & door D e thuoght | portunity and the so-called open That 18 not | Do o e e ot ‘Bpheres of | If there was not a fairly clear appre- Sir Auckland Geddes: “I understand. tion that governments dealing with the government of China intended to be entirely fair with China, and, in their dealings. to regard each other's — AT fach other's upon the good faith of governments | m——————— Sir Aucklan ghe Intention? The Chairm #be Intention.” of China to the agreement and the : coercive about it. It would have :l‘i’ll'lll:; :lr se; 2120 any questions that|peen futile to consider any sort of ave to be dealt with in con- | coercive arrangement. This, like ev- PooD plth trade marks, copy-|erything else. ultimately depended Influence’ was either sdvoeated by|clation of the nature of the agree- 1 am really dealing with a pure draft- ment. It was- impossible to foresee ing point, then, which it is not nec- o’l::{g_ to guraue further at this mo- Bringe Up' Seeond Point. “The next. point of more than ing importance, which I venture hto::nrd for a o «f the draft resolution. I call atten- tion to the words, ‘it being :mtiee:- Atood that the agreement is not to be 80 construed as to prohibit the acqui- Aition of such properties or rights may be necessary to the conduct icular commercial or indus- undertaking.’ “1 venture to suggest that unless any government or would be toler- able to this conference. So far as the British government is concerned we have, in the most formal manner, publicly announced that we regarded this practice as utterly inappropriate to the existing situation and we think that the phraseology used in the earlier part of this resolution admir. ably expresses the view that that system has not only gone, but has gone forever, and is now explicitly condemned. The words ‘general su- periority of rights with respect to commercial or economic lopment in any designated region' are words happily designed, as I think, to de- scribe the system of ‘Spheres of In- fluence’; and the repudiation of that all contingencies. It would be inad- visable to attempt to state them in minute detail. That, however, did not mean the principle could not be stated) more definitely. than hitherto it had been stated. o The resolution in the third article undertook to deal with the creation of machinery for the purpose of r solving questions in a sensible, prac- tical way. It did not constitute a board with authority to decide; it did not egtgblish any fustrumentality with anighing in the nature of pow- ers, the exercise of which would be in derogation of the sovereignty or the freedom of any state; but it did provide machinery for examination of facts or, as the resolution said, Zor #Mome machinery be provided serious |System is as clear and unmistakable | gvestigation and report. Aificulty arise in future out of Such 2’ provis there a8 we could possibly desire. But we 0 as that. Obviously | had supposed that all this had ‘been|tnis A ration, even with general decla. d with respect to the lefiniteness must be certain relaxations of | already discussed and decided. Sir|open door principle, would leave much the central principle of the resolu- is recognized in the resolu- Auckland Geddes, -therefore, dévoted himself to dealing not with these gen- that tlon itself; dut how much relaxation|eralities—he thought them beside our 48 to be allowed and how 0 define .the smount of relaxation 20 be allowed, 80 that there may not e _international discussion without ond over the interpretation of this «lause? It occurs to me that it may Dot be beyond ‘the range of, possi- Blilty to ,apply some ?ma simple Fetarance’ Lo “whita” oh® cpurt of such ©ould be 'mbmuea. i ~“That is an important matter, dbink, with regard to these Drovonl: “*The next point I wish to rais small. It {s again in connec- 1 ‘with the last part of the reso- jon. 1 jite understand that it is mot desirable, .it is not desired, and it would be -unfortunate if it were % mo. that this resélution should be led with details, but we have Such things as patent rights, trade jmarks, copyrights, etc. .to provide for in any agreement. We also have h things as mining permits. Those Jave to be looked after and, I think, not covered by the wording of :::_eluuon as it stands at the “The other points I have to rais on this resolution, I think, are ail én the nature of drafting amend- Jments, and perhaps it would be better for me not to take them up at this time . unless it is proposed to com- g.to ,consideration of this matter Hughes Replies to Geddes. chairman said that, with re- to the important questions that ‘they. presented N ints about which me‘:': wou‘m nt. In the first place, she intention, of course, was not to ere with the appropriate rela- between China and her own nals. In two er three of the which were. reantZestly intondcd manifestly intended %0 State the attitude and agreement of the ‘words ‘The done in the present case. The point that cases might is | ai present purpose—but to seeing how I(hey would affect the’ actual, prac- tical development of industrial and economic effort in China. “As regarda most industrial enter- prises, no difficulty arises.. The dif- ficulty only arises when you come to that kind of enterprise which inevit- ably involves a monopolistic flavor, for example, a railway. going to give money to builda rail- way If another rallway is going to be built istant. limited kind, but still a monopoly. Agzain, no one is going to set up & telephone system or a telegraph system if another telegraph or tele- phone system is in the same area, serving precisely the same demand, to be set up by a rival company. course, there are many enterprises of this character. the words at the end of your resolu- tion are intended to deal th such situations, and I have no doubt that in many cases they do so deal. t the point is, do ‘they deal with all of them? And do they deal with them in ,such manper as to prevent interna- tional disputes? It was to this and cognate subjects that Sir Auckland addressed him- selt, He did not awell on the principle Which is expressed with such Tucid ly' Siaane. | The repurts would, of course, ! : and, vigor fn the first paft of the resolution; for on this we are all agreed. But on its practical applica- tion some further consideration does seem necessary, and 1 doubt not will be accorded.” " . Discussion Comeladed for Day. The chairman remarked that the hour waa late and he 4id not know that the committee could go much further in the discussion of this mat- ter. He would say merely one word. He quite appreciated what Mr. Bal- four had said, while the committee gw.r. other than China, the ; was discussing spheres of influence, ther than China” had been |regarding the attitude of the British same could easily be | Sovernment, and nothing could be more gratifying than the assumption arise | that all the powers represented on which would require diplomatic in-|the committes were clearly of the s and f°"""{ give rise.to | view that that practice was entirely. ices of view with Tespect to [|abandoned. The fact wis, howewv: application of the terms of the |that the committee had er, not adopted ent, was common to many of | any resolution which with any defi- propositions which had n | niteness related to that subject, or ‘Without venturing at the | to the matters which were embraced to suggest :nnuni definite, | in it. This resolution only dealt with Jmight be found, before the labors | that phase of the matter which had the conference were finished, that | relation to wwould be advantageous to gromu sort of machinery for t! u:u- Mgfin with questions whic! & o priscpies s Wwhish'the to the appli- | the committee could ‘the " maintenangy the op loor and the uality of oppor ty, and hi, ought i bringing thia’ before the h | committee for discussion wi that arallel ‘to it at five miles|agreement. The ere, therefore, -there must | pa 'f" be a monopoly; no doubt of ‘a very |inquiry As 1 understand it, | §279, to be desired—(and the chairman was indebted to the suggestions made the Iprevloul day in this respect)—if the matter were left to the ordinary in- strumentalities of diplomatic inter- course. The board representing the powers, in the sense that inquiry and report should be -made, would fur- nish the facility for elucidating the facts without impajrment of any- body’s position in the light of those facts. Such elucidation of the facts obody is|would very likely itself lead to an agreement, at ‘least it would much aid in the endeavor to Murlr: again, in the final Ph, provision' was made for there were conidicting cl?lg:l‘.r ot Asks Support for Principle. The chairman saild he would not in :nderu.ln to review matters which ad_recently been the subject of diplomatic representatio! w’lch re- gard to rights in China; they were ar to the representatives of the governments concerned. It was highly desirable, if this. conference were to be made all it should be in removing causes of possible contro- versies, that these practical business questions, should be dealt with in a practical,” business way—that is, Ithrou.h Some mechanism for exami- if there was a confll a ct, between Natioms would in no way part with their right to: main- tain what they conceived'to be their aunn-. Nationals would in no way ) impafred in what they thought ‘were their rights under any conces- sions m-r might dave, :ould ‘t‘n east avold pu SEation (hEOWEN Sn Mpropriate bedy eration, through an appropriate & of the merits of the plrtlcpn.lu case. He submitted (this matter not, of course, the desire to present “mn{o hat was intended to be limited ‘& precise form- of expres- sion, but with the hope that the principle sought to be expressed might have support. Senator Schanzer begged the chair- man to furnish him certain explana-. tions concerning article’ lutions, especi; l( in to the spirit of points (s) snd (b) of that article, : The chairman sald it would give him pleasure to ‘answer as best he could the questions which raised by ator Schanzer. ‘The He felt that all of these points were | in a pplying the principles which they :I:l:, ;“"ry safeguarded and met by | professed. Butpthnytl\e most sin- batoraTeit which had been brought|cere intent there Would doubtless be the Be committee, and on behalf | arise situations of a more or less O ope, Eritish empire delegation ke fambiguous character, where in entire ashed lo announce that they ‘were | good faith different’ positions might Ttady to accept this resolution as it|be possible, and as to which it was aad important that there should be some forTky Sarraut said that it was hard | opportunity for fair consideration and lor m to make a statement regard- | report. This promised that .result. ng a document which he had mever In further answer to Mr. Sarraut's seen before, but that, while wishing | suggestion he wished to say this, to reserve the right to examine the t the more difficulty experienced fext, he felt that he could give a|in defining with precision a particu- avorable opinion of the resolution as | lar legitimate enterprise with which a ;vhola, the principles of which were | there Was no desire to interfere, the wholly in accord with his personal | more important it was that there sentiments as regards the necessity | should be some way of bringing out of an effective application of the|the facts and securin; principle of the open door, for a mere | FePOTt as to cases Of statement of this principle would not: be sufficient. attempting the impossible, a super- He sald he had no_ objections to|refined definition which would at- formulate with regard to article J|tempt all the different categories, of the resolution, save perhaps that|there would exist the machinery it might be pecessary to define just|Which would enable thé powers to what a monopoly was. As. for ar-|deal with:those cases of‘.which it ticle III, he ‘wished'to know who|Was impossible «to form a prejudg- would submit to the board of refer- | ment by a precise definition. ence such difficulties as might arise| Mr. Sarraut had spoken of the last in the interpretation of the principle | paragraph with respect to its ap- of the open door. “As for article 1V, | Dlication to existing concessions. he wished to know whether the de- | Personnaly the chairman saw no ob- cisions of the board would have any [Jection to the paragraph in its re- bearing on already existing conces- [lation to existing concessions. It slons, and whether the validity of|spoke of an existing concession, and certain business concerns of long|he understood that meant that in standing coujd be questioned. pol Anxious to Aveld “Shut Door.” The chairman said it was ot de- ired, of course, that there should be y action upon this resolution until abundant opportunity had been offer- ed for a e respect to tn Tespect to the first question raised by Mr. Sarraut—that was 1o say, in relation to the concluding sentence of the first, article of the an impartial an equivocal character. In other words, instead of oint of time, now or herealter, if there should be a question regarding an_existing concession and its con- orough examination and resolution—he might say this: It was Thever desirable to have a definition defeat its own Rurpose. It it were attempted to define every particular commercial, industrial or financial undertaking which would be permis- #0Only 3 More Days! EZZOTINTS - 'ATER COLORS PAINTINGS © AS MUCH AS 50% . 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