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OUTWARD TELEGRAM
187
125
F. 7/34. CYPHER (TYPEX)
FROM:
D.O.
TO:
CANADA
AUSTRALIA
NEW ZEALAND
(Sent 5.5.p.m.
(GOVT)
.
SOUTH AFRICA.
#
19th Dec., 1942.)
S.D.
136
D.No. 562.
179
SECRET.
My telegram D.No. 559 of 17th December. Extra-territoriality.
Chinese
His Majesty's Ambassador, Chungking, has now been sent further instructions of which following are principal points.
ng (1) My telegram D.No. 559, paragraph 1(C), His Majesty's Ambassador has been instructed to continue to press for national treatment for the carrying on of commerce. He will point out (a) United Kingdom Government though preferring to defer navigation questions to the later treaty, have met Chinese desire to deal with them now (see paragraph (2) below); (b) our proposal exactly carries out the Chinese idea of stating principle of national treatment while reserving elaboration for commerical treaty
•
(2) Coastal trade and inland Navigation. Subject to certain amendments, we are accepting Chinese counter draft which covered besides question of coastal trade and inlaná navigation, question of overseas merchant shipping (see (g) and (a) respectively of paragraph 1 (D) of my telegram D.No. 509 of 4th December). Latest revised draft proposed by us in accordance with decision to meet Chinese wishes in this matter is to following effect:-
Both H.C.P. agree that merchant vessels of one H.C.P. may freely come to ports, plaçes and waters of other H.C.P. which are or may be opened to overseas merchant, shipping and
that treatment accorded to such. vessels shall be no less favourable than that accorded to national vessels and shall be as favourable ea that accorded to vessels of any third country. Vessels defined as all vessels registered under law of any of territories of H,C.P. to which treaty applies,
We relinquish special rights which our vessels have been accorded with regard to coasting trade and inland navigation. in China. China relinquishes special rights accorded to Chinese vessels on the Irrawaddy in 1894 Convention. Should one H.C.P. accord in any of his territories right of coasting trade or inland navigation tó vessels of any third country, such rights would similarly be accorded to vessels of other H.C.P. provided latter permits vessels of former H.C.P. to engage in coasting trade and inland navigation of his territories. Coasting trade and inland navigation are excepted from requirement of national treatment and are to be regulated according to laws of each H.C.P. in relation thereto However, vessels of either H.C.P. shall enjoy within
territories of other H.C.P. with respect to coasting trade ang inland navigation treatment as favourable as that accorded
to
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