Secret.
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MESSAGE FROM THE DEPARTMENT OF STATE DATED OCTOBER 27th, 1942.
1. Yesterday afternoon the Minister Counselor of the Chinese Embassy called at the Department to request clarification of a number of points concerning the draft treaty on extraterritoriality.
Mr. Liu inquired whether under the suggested treaty American citizens would be subject to legitimate Chinese taxation and was given en affirmative reply. He inquired as to the status of various matters such as stationing of foreign troops in China, Chinese fortifications at Woosung and Taku, the hangpoo and Hai Ho conservancies, and the Boxer indemnity. In reply it was pointed out that under Article 2 of the draft treaty this Government was relinquishing all its rights under the Boxer protocol and under agreements supplementary there to - a provision which would take care of all the matters in question.
Mr. Liu inquired whether the questions of inland navigation and coastal trade were covered in the treaty and if not whether these were subjects reserved for later negotiation. He was informed that in the draft treaty
n attempt had been made to get at the heart of the matter of anomalies in our relations with China Consular jurisdiction and to take care of contingent matters requiring immediate attention; that inland navigation and coastal trade were not expressly covered in the draft; that they were among the commercial details which we had not yet gone into; that no particular subject was reserved for later negotiations; that there had been no thought here to seek to reserve, keep, or obtain from China any particular rights or privileges that would not conform to what was the usual and normal thing in modern international relations; and that if the Chinese Government had in mind any particular suggestions in the matter we should be glad to receive them.
2.
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