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2.
7. Exchange of notes. As regards 1(a) the Chinese stated that our text was acceptable in principle but that they wished to introduce a different wording referring to coastal ports (see your telegram No. 1587). But they were confused and the point is still under discussion [grp. omitted] see paragraph 9 below.
8.
1 (b) (c) (a) (c) and (f) are agreed,' with first sentence only of (c) , regarding pilots. The rest of that clause will be covered by instructions to customs authorities which will be later communicated to me by letter.
9. Coastal trade and inland navigation. The Chinese communicated texts contained in my telegram No. 1679. It will be noted that first paragraph includes the substance of our 1(a). The Minister for Foreign Affairs insisted that the Chinese Government were absolutely determined not to commit themselves further and it is clear he cannot be induced to consider a clause agreeing with draft contained in your telegram No. 1552 which I had sent him in advance. He said however that future co-operation with British shipping interests would be considered. appeared to have some form of (grp, undec: ? joint] enterprise, in mind. Ho agreed to additional sentence providing for relinquishment of Chinese rights on Irrawaddy. We might try also for addition contained in my telegram No. 1679 with a view to emphasising that the door is kept open for future negotiations.
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10. Clause 2 is agreed. As regards clause 3, restrictions on travel and residence, the Chinese Govern ment are unable to guarantee national treatment in peace time. They prefer to ohit the clause altogether on the understanding that the right of both parties to impose restrictions for reasons of national security goes without saying. The subject has now been woll aired and we can either agree to drop it or press for agreed minutes in which case we must be satisfied with most favoured nation treatment, as regards restrictions hou in peace and war. I recommend the former cours and request instructions.
11. Personal status. The Chinese Government will consider a simple formula stating the matter as an [grp. undec. ? accepted] principle of international law. We are offering them ad referendum [grp. undec.] text contained in my telegram No. 1680.
12. Real property. We wore informed that the Chinese Government are proposing to revise.agreements on this head concluded with other Powers in 1928, We handed in formulac contained in paragraph 2 of your telegram No. 1573 and will press for something on these lines.
13. Dual/