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Strictly Confidential.

SUBSTANCE OF TELEGRAM FROM THE DEPARTMENT OF STATE DATED

OCTOBER 3, 1942.

(1) With the installing of a new Chinese Ambassador here we anticipate that we may find the Chinese Government approach- ing the American Government at almost any time regarding the desire of the Chinese Government to terminate in China the system of extraterritorial jurisdiction. One of the important reasons why, as we have previously stated, we have felt it advisable to take some affirmative action with reference to the question of relinquishing in China extraterritorial rights at this time has been to show an initiative on the part of the United States and Great Britain and to keep the initiative in our hands.

(2) We believe, with the foregoing considerations in mind, it would be advisable for the American Government to inform in strict confidence the Chinese Ambassador here and for the British Government to inform in strict confidence the Chinese Ambassador in London for their report to the Chinese Government in strict confidence similarly, that the American Government and the British Government for a good many weeks have been giving intensive consideration to the question of making approaches to the Chinese Government directed toward the relinquishment in China of consular jurisdiction and that the study of the American and British Governments has proceeded now to a point where the American and British Governments respectively expect to present to the Chinese Government within the relatively near future for its consideration draft treaties, the conclusion of which would accomplish the described end.

(3) At the earliest possible moment please inform Mr.Eden · of the foregoing and tell him that I suggest that the American Government and the British Government inform orally in the sense indicated the respective Chinese Ambassadors in Washington and in London on Friday, October 9th, the communi- cation of the American Government to be in the forenoon and the communication of the British Government to be in the afternoon with a view to taking account of difference in time.

(4) Also please inform Mr. Eden that the text of a brief draft treaty of the nature we have in mind, prepared after study of the comments of the British Foreign Office, the comments of Ambassador Gauss, and the comments which Ambassador Gauss has informed us the British Ambassador at Chungking has forwarded to the British Government, is being telegraphed separately. When received please communicate the text to Mr. Eden for the information of the British Government and for such comment as it may desire to offer.

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