This telegram is of particular secrecy and should be retained by the authorised recipient and not passed on].

[Cypher]

AMENDED DISTRIBUTION

WAR CABINET DISTRIBUTION

From: CHINA

FROM CHUNGKING TO FORLIGN OFFICE

291

Sir H. Seymour

No. 447

D.

April 4th, 1942.

R.

6.12. p.m. 4th April, 1942. 7.05. p.m. 5th April, 1942.

Repeated to Washington No.33.

b b b b b b

Your telegram No.410.

SECRAT

I agree to proposal to take the initiative in concluding a treaty with China" now for abolition of extraterritorial rights. An offer to do so would inevitably be regarded as a symptom of our weakness in the Far East, but this should not deter us from making it.

2. As regards safeguards I consider it would be a mistake in present circumstances to spoil our gesture and complicate negotiations by attempting to attach too many strings. Nor would the Chinese accept any provisions other than such as are ordinarily included in treaties between equal States,

but I assume that an attempt would be made to secure general guarantees such as reciprocal most favoured nation treatment, for trade, taxation of residents and land ownership, although I realise that historical background of these questions in China and attitude of Dominions may render matters delicate. I also think we should try to secure à friendly statement by China that British subjects will be tried only by modern China courts.

3

On the question of the area to which Treaty should apply, my preference is for the whole of China (including Manchuria) unless for any reason the Chinese prefer course (b) though I should expect them to prefer (a). I do not think effects of course (a) in occupied areas will matter seriously in practice so far as Japanese attitude in matters of jurisdiction etc. is concerned. They will do what suits thum best.

4. From the point of view of encouraging the Chinese during the war and paving the way for post war collaboration most important point to bear in mind will be grp. omit.] proposals are so framed, and negotiations so conducted as to make it clear throughout that the treaty is between equals and allies. I agree as to importance of ensuring that the Chinese realise that the initiative comes from us and for this reason must rely on you to keep me informed of preliminary negotiations and to give me ample warning when the time comes to communicate with them.

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