CO129-588-23 China- British extra-territorial rights- negotiations with China 28-3-1942 - 27-11-1942 — Page 189

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izi

OUTWARD TELEGRAM

24 OCT TONG

39

187

CYPHER (TYPEX)

FROM:

D. Oc

TO:

CANADA

AUSTRALIA

(GOVT )

SOUTH AFRICA #

NEW ZEALAND

(Sent 1.15 p.m., 24th Oct., 1942.)

·

M.D.

IMMEDIATE

D. No. 432 SECRET

25

My telegran D. No. 428 of 21st Cetober. Chinese extra-territoriality.

1. As result of further discussion with United States Government it has been decided to delete last sentence of Article 4 (iv) of United Kingdom draft in my telegram D. No. 419 of 17th October beginning "It is understood that where the obligations and liabilities of the municipal councils,

#

2. United States Government also do not wish to include second sentence in Article 6 beginning "Under all legel proceedings.... on ground that this subject is more appropriate for negotiation in a subsequent treaty and that it might raise for them difficult problems of federal and state jurisdictions. United States Government have been informed that unless they change their view sentence will also be deleted from United Kingdom draft. We have however sxpressed opinion that unless national treatment in matters of carrying on business etc. is secured from Chinese Government in the present treaty it is highly improbable that -it will be possible to secure it in the future comprehensive

treaty and that a mere right to carry on business, unless national treatment as regards the conditions of its carrying on is secured, may be of little practical value. United States Government has accordingly been strongly urged. to reconsider their attitude on this point.

3. In response to request referred to in my telegram 23 D.No. 424 of 20th October, Ünited States Government postponed

presentation of their draft treaty to Chinese Ambassador in Washington. They have however now indicated their intention to do this on morning of 24th October. In doing so they will ask Chinese Ambassador to regard text as confidential until agreement on it has been reached between United States and Chinese Governments. United States Government wall inform press after Ambassador's visit that draft treaty has been given him for aonsideration of his Government. United Kingdom Government will inform Chinese Chargé d'Affaires in London and the Chinese Government in Chungking that they are awaiting the views of the Dominions and India but that they expect the United Kingdom draft treaty to follow closely the text of the United States draft with the addition or a clause covering the rendition of the British Concessions at Tientsin and Cantone

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