7

"In all legal proceedings, and in all matters relating to the administration of justice, taxation, and the carrying on of commerce, nationals of His Majesty in China, and nationals of China in the territories of His Majesty, shall enjoy a treatment not less favourable than that accorded in those territores to nationals of China or nationals of His Majesty as the case may be. In this provision, the expression "nationals of His Majesty" includes companies incorporated under the law of any of His Majesty's territories, and the expression "nationals of China" includes companies incorporated under Chinese law. The rights to carry on commerce shall only be restricted in time of war and national emergency, and then only to such extent as is necessary in the interests of national security and as is imposed upon all foreigners."

Mr. Beckett assured us at the meeting that this phrasing, particularly the words "carrying on of commerce" did not grant the Chinese national treatment in respect of immigration or protection, i, e. the holding of mining rights or agricultural land.

Article 6 on the American lines was finally accepted by the meeting. This will allow the Chinese to appoint Consular officers in any of the territories affected by the Treaty, provided that such territories are open to Consular officers of any foreign country. There is a difficulty about Consuls in New Delhi, where apparently the only Consuls are Nepalese, Afghan, and Persian, but the Chinese have a Commissioner there (apparently a higher rank than a Consul), and it is proposed to have a separate informal understanding with them on the point. As far as I know, the only Colony in the past which was "allergic" to Chinese Consuls was Hong Kong, and there it was agreed in the latter half of last year that an appointment could be made of a Chinese Consul General on certain understandings. In any case it would seem essential to the new understanding with China that she should be granted equal rights on this point.

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