SUGGESTED REDRAFT OF THE PROPOSED

COMMUNICATION TO THE UNITED STATES AMBASSADOR.

128

First paragraph. As in Foreign Office draft.

Second paragraph. Delete everything after end of

the third sentence and insert as follows:-

"H.M. Government regard this matter as one

appropriate to be dealt with when the time comes

for a discussion of a comprehensive Treaty of

Commerce and Navigation such as Article 7 of the

American draft and Article 8 of the British draft

foresees. H.A. Government has no wish then to

retain any unilateral rights but it will be for

consideration whether on a basis of mutual agreement

it will be possible to provide for the shipping of

each one of the Farties to engage in the coastal

trade and inland navigation of the other. The

coasting trades of the United Kingdom and the

Colonies have not been closed to Chinese shipping

and H.M. Government would be very reluctant at this

stage to assume that it will be consistent with

enlightened shipping policy after the war to include

in Treaties which they may make restrictive provisions

as to the trading of ships.

The matter is not one of immediate practical import-

ance and H.M. Government, for their part, are not

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