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By Nanjing Treaty, foreign capitalists could establish their own jurisdictions and enjoy extra-territory rights within their land. Since the beginning of the open trade, foreign concessions and settlements were established in Shanghai in succession, occupying the major part of the old city. A Concession, known as Zu-jie in Chinese, was a piece of land granted or leased directly by Chinese government to a foreign government in return for the payment of a nominal ground rent; a Settlement, known as Ju-liu-di, was simply a place set aside where foreigners might live and deal directly with individual Chinese owners in buying or leasing land(Jones, 1939, p34).   remove