The negotiations then commenced were frustrated by the advent of the Nationalist Government and the formation of a new local government in 1027 under a mayor holding his authority from the Nanking Government. The establishment of the Chin-lose Municipality brought into existence single Chinese Municipal authority for Shanghai, which claimed to administer the External Roads Area, together with the adjoining districts a part of its own territory, To quote further from the Feetham "The existence of the Council's roads, and the Council's administrative eetivities on the external roads and the areas immediately adjoining, constituted an obstacle to the exercise fof its authority by the new Chinese Municipal Government the region concerned and appears to have been regarded as involving 2 standing challenge to its rights. AS the Chinese Municipal Government extended the scope of its activities, Gimculties ensued owing to the two authorities functioning side by side in the same areas. It must, I think, be recognized that friction between the two authorities, which might concelv= ably have been avoided so far as th Sotilement itself was concerned, it there had been frank recognition of the powers conferred on the Council nder the Land Regulations, wax practically inevitable in the External Roads Areas under the circumstances with which the officials of the new Chinese Municipal Government found themselves confronted, "Political and party influences have aggravated the dimeulties Inherent In the situation, and complicated the teke of those' representatives of both authorities who have recognized the desirability of arriving. sat some reasonable modus. vivendi."
Long Negotiations rain 1027 onwards the Couneit under the leadership of successive chairmen, Mr. Fessenden, MI" Arnhold,' Mr. "Bell, General mtachaghten and Mr. Franklin, had been engaged unfit 1957 in successive series of negotiations with the successive mayors of the Chinese Municipality, for the purpose of arriving at a modus vivendi'on the Outside Roads, Mr. Justice Feetham in his report 1031 reviewed the whole question ud formulated tentative plans for the ettlement of the dispute.
1929 at the Ratepayers' Meeting, Mr. Stirling Fessenden, then chairman of the Council, in his address referred fo the Extra-Settlement Roads problem as follows:—
"The question of "outside roads" is of the most vital importance to the foreign community and, from. the Chinese point of view, equally important to them, ard one which we had
Text read from the printed page and cleaned; old type leaves the occasional error.