CO129-588-23 China- British extra-territorial rights- negotiations with China 28-3-1942 - 27-11-1942 — Page 141

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them to provide for these rights on a reciprocal basis.

H.M. Government would therefore wish to discuss these

questions at a later stage with a view to arriving at a

reciprocal agreement possibly in the course of the

negotiations for a comprehensive treaty of commerce and

navigation, such as Article 7 of the American draft

(Article 8 of ours) foresees. Meanwhile, the matter is

not one of immediate practical importance, and unless the

Chinese Government are anxious to deal with this question

at once and to insert provisions into the present treaties,

would south twefe

H.M. Government have no present intention of entering into

detailed negotiations on this subject at the present time.

They would propose at most to give a general indication

to the Chinese Government on the same lines as the

Department of State have already followed if and when the

matter is raised at the negotiations in Chungking.

With regard to such matters as ownership of and

compensation for wharves and other shipping facilities,

it would not appear that the loss of the right of British

ships to engage in inland navigation and coastal trade

1

should affect the position of British subjects or companies

whose titles to ownership are expressly recognised in

/ Article 5 of the British draft (see Article 4 of the

American draft). In case, however, the Chinese Government

reveal their intention to reserve coastal and inland navi-

gation entirely to Chinese shipping it might be desirable to

secure in an exchange of notes that the Chinese Government

would take over at a fair price any wharves or other

shipping facilities which British shipowners previously

engaged in these trades might wish to sell. But subject to

any further comments by the Department of State it does not

appear to the Foreign Office that this is suitable for

inclusion in the treaty itself. The Foreign Office would,

however, be glad to consider any further observations on

this point which the Department of State may wish to offer.

I /