OUTWARD TELEGRAM

[This Document is the Property of His Britannic Majesty's Government, and should be

kept under Lock and Key.]

irl

136

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

(F 8299/828/10)

[CYPHER].

WAR CABINET DISTRIBUTION

TO CHINA

FROM FOREIGN OFFICE TO CHUNGKING

No: 1602

December 18th, 1942.

D. 6. 35 p.m. December 18th, 1942.

Repeated to Washington No.559 SAVING.

IMMEDIATE

11111

189 My immediately preceding telegram [extraterritoriality] paragraph 2.

Following is text referred to:-

"His Majesty The King and the President of the Republic of China mutually agree that merchant vessels of one High Contracting Party shall be permitted freely to come to ports, places and waters in the territories of the other High Contracting Party which are or may be opened to overseas merchant shipping and that treatment accorded to such vessels in such ports, places and waters shall be no less favourable than that accorded to national vessels and shall be as favourable as that accorded to vessels of any third country. The term 'vessels' of a High Contracting Party means all vessels registered under the law of any of the territories of that High Contracting Party to which the treaty signed this day applies.

2 "His Majesty The King relinquishes the special rights which his vessels have been accorded with regard to coasting trade and inland navigation in the waters of the Republic of China, The President of the Republic of China relinquishes the special rights which have been accorded to Chinese vessels In respect of navigation on the river Irrawaddy under Article 12 of the Convention signed at London on the 1st March, 1894. Should one High Contracting Party accord in any of his territories the right of coasting trade or inland navigation to vessels of any third country, such rights would similarly be accorded to vessels of the other High Contracting Party provided that the latter High Contracting Party permits vessels of the former High Contracting Party to engage in the coasting trade or inland navigation of his territories. Coasting trade and inland navigation are excepted from the requirement of national treatment and are to be regulated according to the laws of each High Contracting Party in relation thereto. It is agreed, however, that vessels of either High Contracting Party shall enjoy within the territories of the other High Contracting Party with respect to coasting trade and inland navigation treatment as favourable as that accorded to vessels of any third country subject to the above-mentioned proviso".

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