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ردة

2.

applies and wish to continue existing practice in all respects, you should proceed as instructed in paragraph 11 of my telegram

under reference.

7. Exchange of Notes. See draft Chinese note contained in my immediately following telegram. British note would be identical mutatis mutandis.

8. Coastal Trade and, Inland Navigation. Wording suggested in paragraph (g) of draft exchange of notes is closely modelled on draft adopted by United States Government. If the Chinese Government are not prepared to agree to. permit. existing practice to continue; in China, Burma Office will wish to consider revision of the Burma Convention of 1894, with special reference to Article 12. whatever point you consider appropriate you should give an intimation of this to the Chinese Government. I would also remind you of my telegram No. 1485 paragraph 7.

9.

At

Pilots. See paragraph 17 of my telegram under reference. Suggestion that the Chinese Government should assume responsibility for financial obligations of the Shanghai Licensed Pilots Association should be made orally. See also paragraph 1 (c) in the draft exchange of notes.

10. Undertaking to discuss questions affecting sovereignty of China. See paragraph 20 of my telegram under reference. We can accept Chinese proposal unless reply of Chinese Government to your enquiry seems to you open to serious objection (see paragraph 6 of the draft exchange of notes).

11. Pending cases. See paragraphs 21 and 22 of my telegram under reference. Text appears in paragraph 1(f) of draft exchange of notes. In order to avoid difficulties of transfer you should try and arrange so far as possible for completion of cases in British courts in free China, before coming into force of treaty.

12 Overseas shipping. Text in paragraph 1(a) of draft exchange of notes is based on the last American proposal. It is quite satisfactory to us. We are assuming that this American proposal supersedes an earlier one. under which Chinese Government were to designate those ports in China which should be open to overseas American shipping. This latter American proposal is we consider open to serious objection as limiting overseas shipping to certain ports · only.

100

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13.. Future holding of real property. I agree that you should speak as proposed in your telegram No. 1577 [of 20th November]. As India and Burma might not be able to give complete reciprocity it would be possible to exclude from any provision in the exchange of notes Indians and Burmese in China and Chinese in India and Burma. If the Chinese response is sufficiently favourable I will supply text.

O.T.P.

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