3.
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Minister for Foreign Affairs is quite alive to our
point about wishing to retain power to levy death
duties, and so far insists that, while there are no
death duties in China now, they should if and when
introduced be equally levied on estates of foreigners dying in China. Perhaps we could insist on retaining right to levy death duties as long as we retain excluded areas (Shanghai) and British courts therein.
I request urgent instructions on whole subject which
is too technical for us to handle here without further
guidance. As I anticipate a certain deadlock over excluded areas it will be no bad thing to have this
question of personal status as well as criminal
jurisdiction in reserve with which to make play
always provided that any form of compromise on personal
status is possible from our point of view.
5. May I if necessary offer reciprocity in
following articles; (a) arbitration, (b) rights in immovable property and expropriation and (c) military
service and forced loans? It may make all the differ-
ence if we can do so, especially in regard to (a) and (b). If we can I would suggest adding as final clause
to (? those) articles something on following lines:
"Chinese citizens in Great Britain shall enjoy on a
reciprocal basis the same rights as are above provided
for in the case of British subjects in China."
6. Please expedite instructions concering shipping article.
Addressed to Foreign Office No. 68; Peking and Tokyo; copy to Shanghai.
repeated to