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3.

Article 8. I suggest this article be left out as it might give Chinese opportunity of raising question of right of search of British premises and examination of books etc. despite our extra-territorial

right of immunity. Such an article might more suitably be reserved for extra-territorial treaty when Chinese

will presumably be legally entitled to search premises

and examine books, subject to usual safeguards. Do

you agree to its omission?

Article 9. Unless there is special reason for

using words "exaction" I suggest substitution of word

"levies" as being less likely to hurt the Chinese

susceptibilities.

Article 18. I am consulting Governor of Hong-

Kong by telegraph pressing for immediate answer.

Article

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2nd paragraph 2nd sentence.

I presume this does not imply that, prior to abolution of extra-territoriality, the said bye-laws and regula- tions will necessarily be binding on British subjects

and ships unless enforced by our King's Regulations?

I take

Article 25. 2nd paragraph. I suggest substitution

of "the" for "this" before the word "purpose" in order

to make it quite clear that Chinese registra- tion only applies to inland water navigation. this clause to mean that we admit right of Chinese

authorities to grant or withhold registration for inland navigation at their discretion. Am I right?

Articles 32 and 33. I am substituting words

"In China" for "Peking".

Article 55.

I propose to add a paragraph

similar

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