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it has been suggested that China would not thereby

become bound to grant similar privileges to the vessels

of other nations which are entitled to most-favoured-nation

treatment under their treaties except as regards those

countries which like Hongkong would be in a position to

give the Chinese some quid pro quo, namely, France and

Portugal to whom belong the ports of Kwangchouwan and

Macdao. This contention does not appear to be sound.

country which enjoys the right to most-favoured-nation

treatment is entitled (unless there is any stipulation to the

contrary) to claim such treatment even though it cannot

grant anything in return. In the case of Japan in particular

the provisions of article IX of the Sino Japanese Treaty

Any

of 1903 according most-favoured-nation treatment are so wide

and so clearly expressed that there can be no possible doubt

on the point.

4. Any benefits which China may extend under article V

of the proposed agreement to British vessels would also have

to be extended to the vessels of other countries entitled

under their treaties with China to mest-favoured-nation

treatment, but such benefits would of course only relate to

what is actually contemplated by article V of the agreement,

viz. trade between Hongkong and the Chinese inland waters and to vessels registered for Chinese inland water navigation.

China would not be bound to extend these privileges to

Japanese non-registered vessels, or to Japanese registered vessels trading, for example, between the inland waters of

China and a foreign port such as Nagasaki where no office

of

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