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(F 8042/828/10)

MESSAGE FROM THE DEPARTMENT OF STATE DATED NOVEMBER 29, 1942.

(communicated in letter from United States Ambassador

on 30th November.)

1. The Document handed by the Department to the Chinese on November 27th in reply to their's of November 10th contains the new proposed Preamble as communicated to you in our message of November 27th

2. With reference to paragraph 1 (1) of the Department's_message of November 11th, we state in the Document that the additional language suggested by the Chinese would not seem to be necessary but express our willingness to delete from the end of the second paragraph of Articles II and III of our draft treaty the words "and for the recognition and protection of all legitimate rights therein."

3. (1) As regards paragraph 1 (3) of the Department's message of November 11th, it is stated that we are agreeable to altering the language in question as set forth in paragraph 4 of the Department's message of November 21st.

(2) We concur in the suggested addition to the second paragraph of Article IV of the Draft of the sentence "it is also agreed that these rights or titles shall be subject to the laws and regulations of the Republic of China concerning taxation, national defense and the right of eminent domain". by the Chinese that such rights or titles may not be alienated to the As regards the further language proposed government or nationals of any third country without express consent of the Chinese Government, we state that we would not raise objection provided that the Chinese Government declares in the supplemental note that the restriction on the right of alienation will be applied in an equitable manner and that if the Chinese Government declines to give assent to a proposed transfer it will undertake, if the American party interest so desires, to take over the right or title in question and pay adequate compensation therefor.

4. We are expressing concurrence in the deletion from article V of the words "and to the carrying on of commerce" and giving agreement to deferment of this subject for the later comprehensive treaty.

5. As regards paragraph 1 (5) of the Department's message of November 11th, we refer to our concept and assumption that upon the abolition of extraterritoriality the Chinese Government would wish to accord to the U.S., its officers and its other nationals, rights similar to those normally enjoyed in friendly countries under modern international practice, to the favorable attitude which this Government has adopted and is prepared to continue toward requests of the Chinese Government for the opening of Chinese Consular offices in American territory and to our expectation that the Chinese Government would not perceive objection to the opening of American Consular offices at such places in China as would be appropriate. Government would be inclined not to raise objection to the suggested We state that in the light of the above this change.

6. As regards the proposed exchange of notes we are pointing out that while some of the points raised by the Chinese Government seem to be covered in general by the draft treaty and others do not have actual relation to extraterritoriality we are agreeable to an exchange of notes covering various matters of interest to either government.

7.

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