OUTWARD TELEGRAM
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No: 1587
WAR CABINET DISTRIBUTION.
To: CHINA,
FROM FOREIGN OFFICE TO CHUNGKING.
December 12th, 1942.
D. 4.15 p.m. December 12th, 1942.
i.
yyyyyy
IMMEDIATE.
My immediately preceding telegram No. 1586 [of 12th December: extraterritoriality].
Chinese comments on United States draft exchange of notes.
Overseas shipping. Chinese Government suggest insertion of following sentence in United States draft exchange of notes: "In the light of the abolition of treaty ports as such, it is understood that all coastal ports in the territory of the Republic of China which are normally open to American overseas merchant shipping will remain open to such shipping after the coming into effect of the present treaty and the accompanying exchange of notes."
2. We prefer wording in 1 (a) of annex to our draft exchange of notes and you should still press for ir. Only comment which we wish to offer on Chinese proposal in the previous paragraph is that use of expression coastal ports would be object- ionable to us since it would apparently close river ports pre- viously visited by overseas shipping. It would also be in- consistent with our proposal that inland navigation should in practice be permitted to continue.
3. Coastal trade and inland navigation. Chinese Govern- ment state that in view of the importance which Chinese people attach to questions of coasting trade and inland navigation, they are anxious that these questions be dealt with in as clear-cut a manner as is the question of visits by foreign warships. They therefore propose the following wording: "It is mutually under- stood that the Government of the United States of America relinquishes the special rights which vessels of the United States of America have been accorded in connexion with the coasting trade and inland navigation in waters of the Republic of China and that the Government of the Republic of China is prepared to take over any American properties that may have been engaged for those purposes and to pay adequate compensation therefor. It is further understood however that should the Republic of China later in any way extend the right of inland navigation or participation in coastal trade to vessels of any third nation, such rights would similarly be extended to vessels of the United States of America."
4. United States Government are prepared to accept the above subject to following redraft of second sentence: understood however that if vessels of any third Powers are permitted
"It is further to participate in the coasting trade or inland navigation, vessels of the United States of America shall be allowed the same privilege."
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