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telegram D. No. 522 of 8th December, paragraph 4 and have submitted counter draft. They have however agreed to addition sentence providing for relinquishment of Chinese rights on Irrawaddy.
2. Chinese replies on above and other relatively minor points are now under consideration here and further telegram will be sent in due course as to progress made.
3. United States Government have agreed to give up national treatment for their commerce in China (see my telegram D. No. 509 paragraph 1 (c)) and are not of course concerned with the Kowloon leased territories. They are still in negotiation with the Chinese as regards coastal trade and inland navigation, but will probably accept Chinese counter draft. Apart from this they have virtually concluded their negotiations with the Chinese and are proposing signature of their Treaty on 1st January. They point to the fact that besides being New Year's Day this is the first anniversary of the declaration by the United Nations. It may be that this date will be inconvenient to the Chinese, since it is a national holiday. We also should like to sign our Treaty with the Chinese on that day, provided we can conclude our negotiations by then.
Copy to:-
V.C.O. F.O.
Sir E. Bridgea
Sir Basil Newton
Mr. H. Ashley-Clarke
1.0.
B.0.
C.0.
Treasury D.O.T. B/T
Mr. R.K., Sloan
Mr. H.A.F. Rumbold
Mr. V.T. Annan
Mr. Monson
Mr. N.E. Young
Mr. J.W. Golsby
Mr. A.R. Fraser.