CO129-588-23 China- British extra-territorial rights- negotiations with China 28-3-1942 - 27-11-1942 — Page 73

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2.

the right of eminent domain, and that no such rights or titles may be alienated to the Government on nationals (including companies) of any third-country without the express consent of the Government of the Republic of China.

Clauses 2 and 3 no change.

9. Article 7; same as our article 6 except that in last sentence the words "ard the carrying on of trade" are omitted before the words "treatment not less favourable".

10, Article 8: following changes from our article 7. First sentence after the words "permitted to reside" continues "in such ports, places and cities of territories of the other High Contracting Party as may be agreed upon". In second sentence omit the words "and companies". In the fourth sentence omit the words "any of" before "their nationals". No other change.

11.

Article 9; same as our article 8 except that in clause 2 the words "and exchange of notes" are inserted after the words "present treaty" in two places where that expression occurs.

12.

Article 10: same as our article 9.

Draft exchange of notos is annexed to treaty, text of which is as follows "Under ins tructions of my Government I have the honour to state that, whereas the treat, signed to-day between His Excellency the President of the National Government of the Republic of China and His Majesty The King grp. undec? of] Great Britain, or Ireland and the British Dominicns beyond the seas, Emperor of India, [grp. undec. ? abrogating] extra territoriality and its related rights, it is the understanding of my Government that the system of treaty ports, and of the special courts in the international settlements at Shanghai and Amoy, the carrying on of coastal trade and inland navigation by nationals of foreign countries, [grp. undec. ? the] employment of foreign pilots, the employment of a foreign national as Inspector General of Chinese Maritime Customs, the entering of foreign warships into Chinese ports without previous consent of the Government of the Republic of China are within the scope of abrogation by the present treaty. Questions which are not covered by present treaty and exchange of notes annexed there to and which effect the sovereignty of the Republic of China shall be discussed by representatives of the High Contracting Party and shall be decided in accordance with generally accepted principles of international law and with modern international practice. I shall be much obliged if you will confirm above understanding".

O.T.P.