124

6023/173.

TELEGRAM from the Secretary of State for Dominion Affairs to the Secretary of State for External Affairs, Canada, the Prime Minister of the Commonwealth of Australia, the Governor General of

New Zealand, the Minister for External Affairs, Union of South Africa and the Minister for External Affairs, Irish Free State

(by bag).

(Sent 12.15 a.m., 3rd April, 1931)

Circular B. No.41.

Secret.

Reports

My telegram 9th March Circular A.No.5 Secret. received from His Majesty's Minister in China indicate that substantial progress has been made in the negotiations with regard to extraterritoriality and that provisional agreement has been reached ad referendum on the greater part of the matters of detail contained in the draft treaty of which copies were enclosed in my despatch 7th January Circular A. No.6 Secret. The way has thus been cleared for discussion of the major issues and as the Chinese are known to be anrious that a settlement should be reached before the assembly of the National People's Convention on the 5th May it

In the is possible that matters may move very rapidly. circumstances it seems very desirable that any question which may arise as to the form of the treaty which it is hoped will result from the negotiations should receive consideration forthwith.

In view of the fact that it is no longer practicable to maintain intact the privileges hitherto enjoyed by His Majesty's subjects in China, there can, we think, be no question as to the desirability of seizing the present favourable opportunity for It will be negotiating modifications in the existing regime. appreciated, however, that any treaty with China entered into by His Majesty modifying the present system would necessarily affect

all

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