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OUTWARD TELEGRAM

W.F. 7/22.

CYPHER (TYPEX)

FROM:

D.O.

TO:

CANADA

(GOVT.)

AUSTRALIA

NEW ZEALAND

##

SOUTH AFRICA

11

(Sent 12 noon 28th Nov., 1942.)

8.D.

286

D. No. 489 SECRET.

82 My telegram D. No. 463 of 16th November,

extra-territoriality.

Chinese

1. His Majesty's Government in the United Kingdom fully agree with view which His Majesty's Government in New Zealand have emphasised in a recent telegram that China should be entitled to exercise full sovereign rights over her own territories on the basis of reciprocity and equality, and that any bargaining or introduction of qualifications in a matter affecting these principles should be avoided.

2.

It has been concern of the United Kingdom Government in present negotiations with Chinese Government to base their policy upon this,

An illustration of this policy is afforded by the United Kingdom Government's attitude to the Chinese Government's proposal for inclusion in draft treaty of an article providing that relations between China and United Kingdom etc., shall be based on principle of equality and reciprocity, (i.e. probably thereby raising question of right of entry) and the United States Government's proposed reply 82 (see my telegram D. No. 463, paragraph 2(a) and paragraph 5). United

Kingdom Government have informed United States Government that, whilst they are ready to concur in the United States attitude, they attach the highest importance to the principle that the relations between this country and China to be inaugurated by the present treaty shall be firmly based on genuine equality and reciprocity.

3.

United States Government have also been informed in connexion with another article that there is no intention on the part of the United Kingdom Government to retain anything which is not normal in international practice. On the other hand, while ready to abandon all inequalities suffered by China, United Kingdom Government are not prepared to substitute other inequalities to the detriment of British or other interests which may be affected by the present treaties.

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Apart from the question of Kowloon, which will be dealt with in a later telegram, the principal outstanding points under negotiation to which the United Kingdom Government attach importance are the questions of (1) coastal trade and inland navigation (see my 82 telegram D. No. 463 of 16th November, paragraph 4), and (2) the grant

of "national treatment" for the carrying on of commerce in China.

5. As to (2) of preceding paragraph, Chinese Government have suggested omission of the words "and the carrying on of commerce" from before the words 11 treatment not less favourable" in Article 6 of the 42 United Kingdom draft treaty (see my telegram D. No. 434, paragraph 3).

United/

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