25
6.
2
Article 11 is also on the lines of the stock article, but in view of the inclusion of companies within its scope it has been necessary to omit the provision giving rights of acquisition by inheritance of property, foreign companies, as you will be aware, being prohibited from owning land in the United Kingdom except by virtue of a licence in mortmain.
7. The article relating to companies included in the first draft of the treaty enclosed in my despatch under reference has been deleted from the present draft as it was feared that a special article dealing with companies might give rise to difficult discussions. The matter has been dealt with by including a reference to companies. in articles 5, 6, 7, 8, 9, 10 and 11.
8. Articles 12 and 13 reproduce two articles that the Chinese took out of the Tariff Autonomy Treaty of the 20th December and put into the form of an exchange of notes. It is considered desirable, particularly having regard to the terms of that exchange of notes, that these fundamental provisions should be included in the definitive treaty which is to regulate Anglo-Chinese commercial relations. Articles 17 and 34 similarly relate to matters of importance dealt with in annexes to the Tariff Autonomy Treaty.
9. Articles 14, 15 and 16 relate to prohibitions and restrictions, and are in the form which is now generally adopted in our treaty proposals.
10. With regard to article 18, I understand that the Colonial Office are communicating with the Government of Hong Kong by telegram. Pending such consultation the article has been left in the draft, but its eventual retention must be regarded as subject to the concurrence of the Government of Hong Kong.
11. Article 19 is the stock form. It is based on the Customs Formalities Convention, to which China is a party.
12. Articles 20, 21, 22 and 23 are all stock form, but see paragraph 14 below. In article 24 there has been a slight departure from stock form with a view to avoiding specific reference to such matters as tonnage, harbour, pilotage, lighthouse or quarantine duties.
13. Article 25 is drafted in its present form on the ground that for the purposes of negotiation it appears to be good tactics to assume that the Chinese Government will not desire to make any change in the present position as regards the coasting trade. His Majesty's Government may find it necessary to accept modifications on the lines discussed in the "Note on the proposed Anglo-Chinese Commercial Treaty enclosed in my despatch under reference, but it would appear to be wiser to wait and see what proposals are made by the Chinese before putting forward alternative proposals of our own.
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14. Article 26 has the effect of modifying our stock navigation articles, which, in view of the fact that foreign vessels may only trade with specified ports, the Chinese would otherwise be unable to accept. This article makes it clear that the Chinese are unable to give us full reciprocity.
15. Articles 27 and 28 are stock form. The first paragraph of article 29 is in the usual form, and the remaining paragraphs have been added to meet the special circumstances in China.
CL
16. Article 30 is in stock form with the substitution, however, of the words suitable remedies" for the words "suitable civil remedies and, in cases of fraud, suitable penal remedies."
17. Articles 31, 32, 33 and 35 are stock form.
18. If you have any suggestions to make in regard to the wording of the draft or if you desire any further explanation, you will doubtless consult me by telegram. Subject to any such consultation you should now take whatever steps you, in your discretion, may consider most suitable to initiate negotiations with the Chinese Government with a view to the conclusion of a commercial treaty on the basis of the enclosed draft.
19. Drafts of the formal preamble and ending of the treaty are now under consideration of the Departments concerned and copies will be sent to you when their terms have been settled.
I am, &c.
AUSTEN CHAMBERLAIN.
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