150

[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.]

TO CHINA.

363

F. 5330/34/10.

(345)

Cypher telegram to Sir M.Lampson (Peking).

Foreign Office.

No. 299.

By Wireless.

October 6th, 1931. 5.00 p.m.

My telegram No. 144 to Nanking (of July 31st;

American criticism of Article XVI. in British draft.)

Following is text of memorandum communicated

to United States Embassy on October 5th.

With reference to the proposed Extra-Territoriality

Agreement with China, the Foreign Office have had

under consideration the State Department's Memorandum

and Draft of Article 16, relating to reserved areas,

copies of which were enclosed in Mr. Atherton's lotter

to Mr. Orde of July 25th last, They have, however,

deferred communicating their comments and suggestions,

as requested in the final paragraph of the Memorandum,

until they had consulted His Majesty's Minister in

Peking. A despatch and a subsequent telegram have now

been received from Sir M. Lampson on this subject,

from which it appears that negotiations between the

United States and Chinese Governments on the basis

of the Draft Treaty prepared by the State Department,

including the Draft of Article 16 referred to above,

may shortly be resumed in Nanking.

2. Article 16 in the British Draft of June 6th

provides that subjects of His Majesty in Shanghai shall

become amenable to Chinese jurisdiction on the ex-

piration of ten years from the date when the Treaty

comes into force. The effect of this, as the State

Department's Memorandum points out, is that the

Chineso

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