B.4327/42
No.of words 192.
Copy Cypher Telegram from Secretary of State to Governor of Burma, dated 31st December, 1942.
XXX
SECRET
1212. Your telegram No.943 dated 16th December. H.M. Ambassador, Chungking, hopes to secure agreement of Chinese to second of three formulac given in my telegram No.1163. After consultation with Foreign Office I have agreed that Burma could participate in any of three formulac. Foreign Office consider and I agree that none of them would be prejudicial from point of view mentioned in your telegram under reference. All three formulae would permit restrictions on the holding of real property by Chinese provided similar restrictions were applied to all other foreigners in Burma and having regard to normal practice in the interpretation of treaties it is considered that it would be extremely difficult for the Chinese subsequently to object to such restrictions on the grounds of treaty rights provided restrictions were not so extensive as to impose a complete ban on tho acquisition of real property by Chinese in Burma. could not of course contemplate a complete ban on acquisition of land by Indians eo nomine, but complete safeguards in rogard to acquisition for agricultural, industrial, etc. purposes by Indians, Chinese or others could be secured by effective restrictions of general application. Position is thereforo safeguarded, and exclusion of Burma, which would have greatly complicated difficulty of negotiations, is unnecessary.
Wo
2. I did not have time to consult you again boforo taking decision stated above since ncgotiations have been subject of urgent correspondence with Chungking in hope of securing signature of treaty by 1st January.
Copics to Mr.Ashley Clarke, F.0.
Mr.Rumbold, I.0.
Mr.Fraser, B.O.T.
Mr.Coster, D.C. Mr.Monson C.0.
Mr.Young, Tsy.
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