the necessary framework of our concepts, policies, and practices to paralleling the British suggestions.
It may be of interest that Dr. Soong has stated categorically to our Ambassador at Chungking that China does not propose to allow foreign flag vessels to participate in coasting and inland waterways trade. If this statement accurately reflects the policy of the Chinese Government (and our impression of the trend of Chinese official and public opinion and feeling of recent times is that it does, we for our part, con- sider that we cannot do dher than to recognize that China, accorded an equal and sovereign place in the family of nations, will be completely within her rights in reserving inland navigation and coasting trade to the Chinese flag.
Accordingly our decisions with respect to the points rai ed by Mr. den involve in our view, not the making of "Concessions" to the Chinese but the effecting of the relinquishment of our special and unilateral rights with no limitation other than the usual and normal limitation, which is a cardinal tenet of our general commercial policy, that out inter- ests shall not be discriminated against as compared with the interests of third countries.
*
e had hoped that the treaty would be signed about December 8th or 9th. Final action respecting inland navigation and coastal trade must now delay signing.
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