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(2)

after the Teriff Conference had met until eventually

the Conference negotiations came to an end because there was no longer a Government with whom to negotiate. (3) The Commission on extraterritoriality has meanwhile completed its labours and presented its report, but here again we are faced with a similar difficulty due to the disintegration of China. The recommendations contained in the Report while suggest- ing certain reforms capable of being carried into immediate effect presuppose for their full execution the existence of a Government possessing authority to enter into engagements on behalf of the whole of China.

(4) During all these civil wars it has been the consistent policy of His Majesty's Government to abstain from any interference between the warring factions or rival governments. Despite the disorders which civil war engenders and the grievous losses in- flicted on the vast comercial interests, both Chinese and foreign, His Majesty's Government have declined to associate themselves with any particular faction or to interfere in any way in the civil commotions. His Majesty's Government believe that the Powers have adopted a similar attitude and that this is and will continue to be the only right attitude to maintain.

In

(5) The situation which exists in China today is thus entirely different from that which faced the Powers at the time they framed the Washington Treaties. the present state of confusion, though some progress has been made by means of local negotiation and agreements with regional Governments it has not been possible for the Powers to proceed

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