CO129-588-23 China- British extra-territorial rights- negotiations with China 28-3-1942 - 27-11-1942 — Page 77

77

DRAFT.

in fact in lechimial

contravention

Chains law

Übservations of the Foreign Office on the messages from the Department of State enclosed in the letter of the 12th November from the United States Ambassador regarding the draft treaty with China on extraterritoriality.

I

1.

The Foreign Office agree with the views expressed by the Department of state on the Chinese proposal to add an additional article about equality

and reciprocity, and with the reply which the United

States Government have in mind to give to the

Chinese Goverment.

2. The Foreign Office are of the opinion

that while it may be difficult to refuse this amendment

nevertheless it is objectionable because it will make

it easier for the Chinese authorities to reject

responsibility for municipal obligations and

liabilities which they wish to avoid. H.M.G. will

be glad to support the United States Government in

resisting this proposal if that is their intention.

In any case it might be advisable to ask the Chinese

what kinds of obligations and liabilities incurred by

the municipalities cmcerned are considered likely to

be repugnant to the laws and regulations of the

Republic of China.

3. Similarly, the Foreign Office are of the

opinion that the proposed addition of the words "or

other illegal practices" in the first paragraph of

Article 4 will reduce the security of rights and titles

to property which the article is intended to safeguard.

Laws and regulations in China are not always enforced,

and it may well be that in the matter of land transfers

some of the commonly accepted practices are technically

illegal. H.M.G. fear that the amendment may give

rise to abuses and they consider that it should be

resisted,

If....