FOREIGN RELATIONS

The foreign policy of this Government is well known. It is one of peace

based on that mutual respect that arises from mutual regard for

international rights and the discharge of international obligations. It is

our purpose to promote understanding and good will between ourselves and

all other people. The American people are altogether lacking in an

appreciation of the tremendous good fortune that surrounds their

international position. We have no traditional enemies. We are not

embarrassed over any disputed territory. We have no possessions that are

coveted by others; they have none that are coveted by us. Our borders are

unfortified. We fear no one; no one fears us. All the world knows that the

whole extent of our influence is against war and in favor of peace, against

the use of force and in favor of negotiation, arbitration, and adjudication

as a method of adjusting international differences. We look with disfavor

upon all aggressive warfare. We are strong enough so that no one can charge

us with weakness if we are slow to anger. Our place is sufficiently

established so that we need not be sensitive over trifles. Our resources,

are large enough so that we can afford to be generous. At the same time we

are a nation among nations and recognize a responsibility not only to

ourselves, but in the interests of a stable and enlightened civilization,

to protect and defend the international rights of our Government and our

citizens.

It is because of our historical detachment and the generations of

comparative indifference toward it by other nations that our public is

inclined to consider altogether too seriously the reports that we are

criticized abroad. We never had a larger foreign trade than at the present

time. Our good offices were never more sought and the necessity for our

assistance and cooperation was never more universally declared in any time

of peace. We know that the sentiments which we entertain toward all other

nations are those of the most sincere friendship and good will and of all

unbounded desire to help, which we are perfectly willing to have judged by

their fruits. In our efforts to adjust our international obligations we

have met with a response which, when everything is considered, I believe

history will record as a most remarkable and gratifying demonstration of

the sanctity with which civilized nations undertake to discharge their

mutual obligations. Debt settlements have been negotiated with practically

all of those who owed us and all finally adjusted but two, which are, in

process of ratification. When we consider the real sacrifice that will be

necessary on the part of other nations, considering all their

circumstances, to meet their agreed payments, we ought to hold them in

increased admiration and respect. It is true that we have extended to them

very generous treatment, but it is also true that they have agreed to repay

its all that we loaned to them and some interest.

A special conference on the Chinese customs tariff provided for by the

treaty between the nine powers relating to the Chinese customs tariff

signed at Washington on February 6, 1922, was called by the Chinese

Government to meet at Peking, on October 26, 1925. We participated in this

conference through fully empowered delegates and, with good will,

endeavored to cooperate with the other participating powers with a view to

putting into effect promises made to China at the Washington conference,

and considering any reasonable proposal that might be made by the Chinese

Government for the revision of the treaties on the subject of China's

tariff. With these aims in view the American delegation at the outset of

the conference proposed to put into effect the surtaxes provided for by the

Washington treaty and to proceed immediately to the negotiation of a

treaty, which, among other things, was to make provision for the abolition

of taxes collected on goods in transit, remove the tariff restrictions in

existing treaties, and put into effect the national tariff law of China.

Early in April of the present year the central Chinese Government was

ousted from power by opposing warring factions. It became impossible under

the circumstances to continue the negotiations. Finally, on July 3, the

delegates of the foreign powers, including those of the United States,

issued a statement expressing their unanimous and earnest desire to proceed

with the work of the conference at the earliest possible moment when the

delegates of the Chinese Government are in a position to resume discussions

with the foreign delegates of the problems before the conference. We are

prepared to resume the negotiations thus interrupted whenever a Government

representing the Chinese people and acting on their behalf presents itself.

The fact that constant warfare between contending Chinese factions has

rendered it impossible to bring these negotiations to a successful

conclusion is a matter of deep regret. Throughout these conflicts we have

maintained a position of the most careful neutrality. Our naval vessels in

Asiatic waters, pursuant to treaty rights, have been used only for the

protection of American citizens.

Silas H. Strawn, Esq., was sent to China as American commissioner to

cooperate with commissioners of the other powers in the establishment of a

commission to inquire into the present practice of extraterritorial

jurisdiction in China, with a view to reporting to the Governments of the

several powers their findings of fact in regard to these matters. The

commission commenced its work in January, 1926, and agreed upon a joint

report which was signed on September 16, 1926. The commission's report has

been received and is being studied with a view to determining our future

policy in regard to the question of extraterritorial privileges under

treaties between the United States and China.

The Preparatory Commission for the Disarmament Conference met at Geneva on

May 18 and its work has been proceeding almost continuously since that

date. It would be premature to attempt to form a judgment as to the

progress that has been made. The commission has had before it a

comprehensive list of questions touching upon all aspects of the question

of the limitation of armament. In the commission's discussions many

differences of opinion have developed. However, I am hopeful that at least

some measure of agreement will be reached as the discussions continue. The

American representation on the commission has consistently tried to be

helpful, and has kept before it the practical objective to which the

commission is working, namely, actual agreements for the limitation of

armaments. Our representatives will continue their work in that direction.

One of the most encouraging features of the commission's work thus far has

been the agreement in principle among the naval experts of a majority of

the powers parties to the Washington treaty limiting naval armament upon

methods and standards for the comparison and further limitation of naval

armament. It is needless to say that at the proper time I shall be prepared

to proceed along practical lines to the conclusion of agreements carrying

further the work begun at the Washington Conference in 1921.

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