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[This Document is the Property of His Britannic Majesty's Government, and should be returned to the Foreign Office if not required for official use.]
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From CHINA.
Decypher.
Sir M. Lampson (Nanking)
20th April, 1931.
D.
20th April, 1931.
R. 9.00 a.m.
23rd April, 1931.
No. 112.
(Tour).
Extraterritoriality.
A conversation today with Wang Chung-hul has not
advanced matters much. He was unyielding regarding
four reserved areas and period of 10 years and taxation (? scheme) arguing that it was unreasonable to include (sic) non-treaty nationals in those areas from Chinese jurisdiction. I answered that could easily be met by limiting reservation under agreement to jurisdiction of British courts therein which should in any case I
thought be done.
2. He made much of growing communist danger, saying that quite recently much literature had been caught in which present government were violently attacked for using methods of negotiation rather than unilateral denunciation; also urging repudiation of foreign loans and liberation of the Chinese people from the burden of their service. With this he made much play adding that he was sure his colleagues could not and would not
meet us over reserved areas.
3. I said that was unfortunate as we could not possibly give them up pointing out that we were in fact in a position physically to retain them though we
certainly.....