CO129-588-23 China- British extra-territorial rights- negotiations with China 28-3-1942 - 27-11-1942 — Page 94

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1.

MESSAGE FROM THE DEPARTMENT OF STATE

DATED NOVEMBER. 11, 1942.

The Chinese Ambassador handed to the Department on Nov qua er 10th a strictly confidential paper reading as follows:

"In connection with the Draft Treaty with regard to relations Detwein China and the United States of America, the Chinese Government proposes for the consideration of the United tates Government certain modifications as follows:

1. To add an article which shall be Article I and read as follows:

'The relations between the Republic of China and the United States of America shall be based on the principles of equality and reciprocity'.

Article I in the original draft shall become Article 2 and Article 2 in the original draft shall become Article 3 and so on.

2. At the end of paragraph 2 of Articles 2 and 3 (which now become; Articles 3 and 4) the fol owing clause:

.always provided such rights are consonant with the law:/ 'and regulations of the Republic of China'.

3.

In the first paragraph of Article 4 in the original draft (which now becomes Article 5), the phrase 'of fraud in the acquisition of such rights or titlès' to be amended to read 'of fra or other illegal practices in the acquisition of such rights or titles'

At the end of the same para raph to be added 'It is also agreed that these rights or titles shall be subjected to the laws and regulations of the Republic of China concerning taxation, national defence, and the ri ht of minent domain, and that no such rights or titles may be alienated to the Government or national (including corporations and associations) of any third country without the express consent of the Government of the Republic of China'.

4.

In Article 5 in the original draft (which now becomes Article 6) to be deleted the words 'and to the carrying on of commerce', as in the opinion of the Chinese Government this Bub ect can be properly left for more detailed provision in a treaty of commerce to be negotiated in the near future.

5. In paragraph one of Article 6 of the original draft (which now ecomes Article 7), the clause 'shall be permitted to reside in those ports, places and cities of the other country which are or may be open to consular of icers of any foreign country' to be amended to read 'shall be permitted to reside in such ports, places and cities may be agreed upon'.

6. There to be added an exchange of notes in order to clarify the position with regard to certain matters which are not expressly covered by the present treaty. A draft note is attached herewith".

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