63

G

136

or treaties of friendship, commerce navigation and

consular rights" would be begun within six months

after the conclusion of hostilities with Japan,

which in fact occurred in September 1945. In

February however the Chinese Government proposed that

since they were busy with the transfer of the

government from Chungking to Nanking the date for

effectively opening negotiations should be fixed

later, and this was agreed to by His Majesty's

Government. Our draft treaty was presented to the

Chinese Government in June, but despite pressure

on our part no reply was received, and it became evident

that the Chinese Government had no intention of

beginning negotiations until after they had

disposed of their Commercial treaty with the United

States, which had been under active negotiation since

February, and was signed at Nanking in November 1946.

(It has been ratified by the Chinese Government but

not yet by the United States Senate). A Chinese

counter draft was presented to our Embassy in

Nanking in December 1946 and reached this country

in January 1947, since when it has been the subject

of inter-departmental consultation. These have

been centralized in the Board of Trade, as the

department most directly interested.

Apart

from delays in receiving the comments of interested

departments, Board of Trade have been handicapped

by the shortage of expert staff, who have for the

most part been engaged in the International Trade

Organisation discussions at Geneva and in problems

arising out of the economic crisis.

Representative

/British

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