[Numbering of paragraphs below corresponds to numbering paragraphs în Department of State's message of 17th November).

in

311

1 (1) The Foreign Office attach the highest importance to the principle that the relations between this country and China to be inaugurated by the present treaty should be firmly based on genuine equality and reciprocity. Nevertheless they are ready to concur in thê attitude adopted by the Department of State in regard to the proposal for a new article on this point.

(2) and (3)(a) and (b) The Foreign Office agree with the Department of state in preferring the original wording of the articles in question and for the same reasons.

(4) As the Department of State are aware, the Foreign office attach importance to obtaining national treatment in the matter of carrying on oœmerce in China. His Majesty's Government are entitled to claim on a basis of equality and reciprocity that this principle should be recognised. Kever- theless the Foreign Office appreciate that the application in detail of this principle is a matter which will fall to be considered in the later comprehensive treaty. In order to bridge the gap and to meet any qualms the Chinese may have on this subject, the Foreign Office propose to instruct His Majesty's Ambassador to inform the Chinese that while they wish to retain the words "end the carrying on of commerce" in the second sentence of Article 6 of the British draft treaty (Article 5 of the American draft) they are prepared to agree to the insertion at the beginning of this sentence of the wory's "Fending the conclusion of the comprehensive treaty mentioned in Article 8" (Article 7 of the American craft). This sentence is already phrased in a tentative way ("will endeavour to accord") and the insertion of the additional phrase now proposed should from the Chinese point of view emphasise its provisional character, while from our own point of view it will establish thất this is a matter for later negotiation. The Foreign Office trust that the Department of 3tate will see their way to concurring in this solution.

(5) The Foreign Office see no objection to concurring the proposed amendment to Article 7 of the British draft

ty (Article 6 of the American draït).

(6) In general the Foreign Office confirm that there intention to retain anything which is not normal in rnational practice. Un the other hand, while ready to „andon all inequalities suffered by China, they are not separed to substitute other inequalities to the detriment of

itish or any other interests which may be affected by the resent t treaties. As to the individual points raised: -

Treaty ports. Inamuch as we desire to eneoU2" Chinese Government to open all parts of the country to Fein sameroe, travel and residence, we welcome the proposal lare the abrogation of the "treaty port system" which Miked commerce and residence to certain cities. The sreigh üffice propose so to reply to the Chinese Government Tth the object of eliciting from them whether this is indeed

at they have in mind.

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