§ 4. Mr. THEODORE TAYLORasked whether there have been negotiations between China and ourselves and other Powers for the addition to the leased territory known as the International Settlement of Shanghai of the district known as Chapei; and, if so, what consideration in return is being offered to China?
§ Sir E. GREYThere is no leased territory at Shanghai, but for many years past friction has been caused between the Chinese and foreign authorities by the conflict of jurisdictions arising out of the natural development of the International Settlement at that port. In September, 1912, the diplomatic body at Peking were requested by the Chinese Government to arrange for the negotiation locally of a clear demarcation of the boundaries between the Chinese and foreign areas with a view to effecting a permanent settlement of the questions at issue. No effect was given by the Chinese authorities at Shanghai to this request until the end of last year, when the subject was again raised. Beyond some friendly exchange of views, no formal negotiations have, however, taken place as yet.