CO129-588-23 China- British extra-territorial rights- negotiations with China 28-3-1942 - 27-11-1942 — Page 53

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Ext.6259/1942.

WITH THE COMPLIMENTS

OF THE

UNDER SECRETARY OF STATE

21 NOV 1942

FOR INDIA.

94

365 groups.

CYPHER TELEGRAM FROM SECRETARY OF STATE FOR INDIA TO GOVERNMENT OF INDIA, EXTERNAL AFFAIRS DEPARTMENT, DATED 19th NOVEMBER, 1942.

53

SECRET.

IMPORTANT.

25

X X X

19952. My telegram 19399 of 9th November. Paragraph 3 China Treaty. We may be driven reluctantly to deal with inland and coastal navigation in Treaty. If so following draft Article is suggested. Please telegraph whether it could apply to India without reservation. You would presumably wish to define Indian coasting trade. Begins.

1.

In the present treaty the term "vessels of one (or of the other) H.C.P." means all vessels registered under the law of the territories of that H.C.P. to which the present treaty applies.

2.

In all that relates to navigation and the treatment of merchant shipping each H.C.P. undertakes to treat in his territories the companies and vessels of the other H.C.P. not less favourably in any respect either in law or in fact than his own companies and vessels or the companies and vessels of the most favoured foreign country. This provision applies to the passengers and cargo which the vessels may carry, and their landing or importation into the territory and their embarking and exportation therefrom, to all duties or charges of any kind payable in respect of the vessels, passengers or cargo (including duties or charges payable on import or landing, export or embarkation), the ports to which the vessels may come and the trade in which they may engage, and to the grant of facilities at the ports in respect of the stationing, loading and unloading of vessels, and the charges therefor.

3. The provisions of paragraph 2 of this Article do not apply to the coasting trade or to inland navigation, in respect of which the nationals, companies and vessels of each H.C.P. shall enjoy the treat- ment accorded to the most favoured foreign country.

4.

In the event of the coasting trade being exclusively reserved in the territories of either H.C.P. tc national vessels, the vessels of the other party may nevertheless proceed from one port to another in such territories, either for the purpose of leaving the whole or

Prov Ref. 10. Latter of 10-11-442"

No Ext 6024142

part/

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