?
FOREIGN OFFICE, S.W.1.
-53
2nd November, 1942.
153
Dear Fraser,
I enclose a copy of a letter of the 28th October from the United States Ambassador, asking for our observations on certain enquiries which have been made by the Chinese Embassy in Washington about our draft treaty with China on extraterritoriality. also enclose a copy of our draft reply.
The chief points at issue are, so you will see, matters of inland and coastal navigation. consider that we are bound to abandon rights in this connexion which are inconsistent with the new draft treaty, but equally we are of course anxious that our firms shall be placed in the most favourable position to participate if possible in inland and comatal navigation on a basis of reciprocity. The best means of doing so seems to be the inclusion of a suitable clause or clauses in the Treaty of Commerce to be negotiated after the conclusion of the present Treaty. As reciprocity is the only possible basis, we shall, if we are to get access to China's coastal trade or inland navigation, have to graat similar rights to the Chinese in the United Kingdom and elsewhere. Could you let me know as soon as possible whether, so far as the United Kingdom is concerned, we are in a position to do so?
We should also be grateful for any other observations which you may wish to offer on this subject particularly on the last paragraph of the draft letter to the United States Ambasay.
I am sending a copy of this letter to Fraser, Board of Trade, and to Monson, Colonial office, and
G.D. Fraser Esq.,
Ministry of War Transport.
Rumbold,