151

(3)

2. Koo said it would be impossible to alter

Chinese nationality law but when I mentioned Dutch arrangement agreed to consider some working arrange- ment. I should be glad if Foreign Office would give

me general lines on which to work on this question.

Would something on lines of Dutch arrangement be

acceptable? It is of course a question which con- cerns South much more than the North. Koo mentioned

protection of persons of Indian descent in Turkestan

as a cause of friction.

3+

Application of Chinese laws in British Courts.

I said this was case for legal experts and pointed out difficulty caused by split between North and South. Could there not be representatives of both to meet our

legal experts on neutral ground? Koo said that this

was by no means out of the question but I fancy South will prove chief difficulty. Koo enquired whether our offer included shipping and navigation laws and I

noted question. Can Sir Skinner Turner supply answer

to this?

4. Taxation. Koo pointed out that there was

national, provincial and local taxation; our offer

read literally excluded the last two which he assumed

was not cur intention. I replied that if taxation was

legal and non-discriminatory I felt pretty sure we could

agree with him; and returned same answer to his sup-

position that "British subjects" was meant to include

British companies etc.

5.

Concessions. Koo referred to my suggestion

of

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