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International Law, the letter goes on to state that the

Chinese Government, while recognising the dual nationality

of persons born of Chinese parents in British territory,

cannot admit that such persons are divested of their

Chinese nationality, and that there is therefore little

likelihood, in view of the position under existing

Chinese legislation, of any result being obtained from

further discussions of the question.

11. This letter contains three important statements.

Firstly, there is the admission that these individuals

have dual nationality. This admission may one day be

useful in the event of our desiring to secure from the

Chinese Government, with reference to the status of Anglo-Chinese in Malaya, a recognition of the principle that a State may not afford diplomatic protection to one

of its nationals against a State whose nationality such

person also possesses. Secondly there is the statement

that it is impossible to admit that such individuals

are divested of their Chinese nationality, referring to

the principle that under Chinese law they cannot be

regarded otherwise than as Chinese citizens in China. And

thirdly there is the statement that no useful purpose will

be served by continuing these discussions, which may be

taken as a definite refusal on the part of the Chinese

Government to come to an agreement with us on the basis of

exemption for transient visitors from the application

of the Chinese Law,

12. The question now arises as to what further action,

if any, we are to take in the matter. The terms of the

reply which we have now at last been able to extract

from

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