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78
If the Chinese Government are willing to give
us national treatment in the matter of taxation (see Article 5 of the American draft treaty) the Foreign
office have no objection to making rights and titles
to land subject to "the laws and regulations of the
Republic of China concerning taxation, national
defence, and the right of eminent domain."
The Foreign Office, however, see considerable
objection to the proposed clause prohibiting the
alienation of such rights and titles "to the Gover-
ment or national (incluing corporations or associations
of any third country without the express omsent of
the Government of the Republic of China." This means
that our nationals could not, without permission, sell
their land to others than their own compatriots or
Chinese. This would limit their market and reduce
the value of their property. This restriction would be
contrary to the principles of equality and reciprocity,
at least so far as this country is concerned, and H.M.G
are of the opinion that it should be strongly resisted.
In negotiating this treaty they are willing to abandon
all inequalities suffered by the Chinese, but not to
substitute other inequalities to their own detriment.
4. The omission of the words "and to the
carrying on of commerce" from Article 5 (Article 6 of the British draft) will deprive our respective nationala
of the treaty right to trade in China, except in so far
in /2" soteric of fertile to
as this is given in those portions of the old treaties
which are not regarded as inconsistent with this one.
old treaties Generally speaking, the/restricted the carrying on
of trade by foreigners to the treaty orte, but the
Chinese now wish by an exchange of notes to abolish
the "treaty port system", (see paragraph II of the
Department...