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7. We suggest a new draft note in which our rights in regard to treaty ports special courts and employment of foreign pilots are relinquished and in which the Chinese Government will insert names of ports normally open to foreign commerce and to the overseas merchant shipping of friendly countries. The draft note also provides for the visits of vessels of each country to places of the other open to overseas merchant shipping and for national treatment and treatment as favorable as that accorded to vessels of any third country. The note provides for the relinquishment by the United States of the special rights which our naval vessels have been accorded in Chinese waters and for the extension by both governments of the mutual courtesy of visits by warships in accordance with international usage and comity. The note mentions that coasting trade and inland, navigation are not related to extraterritoriality and are mattere appropriate for reservation for the comprehensive treaty. It states however an understanding that our special rights in connection with th coasting trade and inland navigation in Chinese waters ere relinquished and that, while the Chinese Government reserves the right to limit the coasting trade and inland navigation to Chinese vessels, the Chinese Government does not contemplate, pending further arrangements between the two Governments, applying restrictions which would materially alter existing practice it being the coLcept and intention of the two Governments that such questions will D resolved on the basis of what is normal and usual in modern international practice.
The note states an understanding that questions not covered by the treaty and notes and which "may affec. the sovereignty" of China are to be discussed by representatives of the two Governments and decided in accordance with generally accepted principles of International Law. (This latter suggestion was made by the Chines Government on November 17th).
If the Chinese suggestion in regard to restriction on the right of alienation is included in Article 4 the note will include) the Chinese declaration mentioned above in paragraph 3 (2) above.
The note also includes an understanding that the acts of the United States court for China and the American Consular Courts shal be considered res judicata and shall whenever necessary be enforca by the Chinese authorities; and that any pending cases before thoje courts shall if Plaintiff or Petitioner so desires, be remitted the appropriate Chinese Courts which shall dispose of them as expeditiously as possible and in so doing apply so far as practiable the laws of the U.S.
8. It is of course possible that, in the light of our countr suggestions, the Chinese may wish to withdraw some of their suggestions of November 10th for modification of the Draft.