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2.

2. Acceptance of a ten years time limit would

not really put off our difficulties at Shanghai till

The effect would be that the time limit had expired. British subjects at Shanghai would pass under Chinese

jurisdiction at the very moment that the treaty now

For them there would under negotiation terminated.

be no treaty protection whatever.

As soon as this was

realised in Shanghai there might be an immediate panic. 3. Even if we have to contemplate the possibility that Shanghai may have to pass under Chinese jurisdic- tion within the next ten years it seems of great impor- tance that, just as in the case of the Treaty now under negotiation, there should be an adequate transition stage extending, perhaps even beyond a period of ten years from now, and adequate safeguards.

4. The same considerations, though in lesser

degree, apply in the case of Tientsin.

5. I should be glad if you would bear the above considerations in mind when discussing this matter with

I am concerned at the joint Committee at Shanghai. the prospect of a time limit for Shanghai and Tientsin instead of simple exclusion from the treaty and reser- vation for subsequent negotiation, which is the most hitherto contemplated, and shall be glad to have your

considered views in due course.

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