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"In the name of the National Government of the Republic of China, I have the honour to declare that when Italian subjects cease to enjoy the privileges of consular jurisdiction and other special privileges, and when the relations between the two countries are on a footing of perfect equality, the Chinese Govern- ment, in view of the fact that Chinese citizens, subject to the limitations prescribed in Italian lawa and regulations, enjoy the right to live and trade and to acquire property in any part of the Italian territory, will grant the same rights to Italian subjects in China, subject to the limitations to be prescribed in its laws and regulations."

A similar declaration is annexed to the Belgian,

Danish and Portuguese treaties of the same year.

This point is one of considerable importance to our

respective interests in China and it appears to us most

desirable that it should be covered on a reciprocal basis

during the present negotiations. It would probably be

convenient to deal with it in an annexed exchange of notes.

It is not improbable that the Chinese Government will

themselves have observations to make upon Article 5 as it

stands, and the discussion of these will give us the

opportunity to press for this point to be covered.

I should greatly appreciate receiving the views

of the United States Government on this question at their

early convenience. I can of course give you further

details of the exact technical position in the United

Kingdom on this subject if desired.

(3gd.) ANTHONY EDEN.

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