Colonial Office
.Esq)
180 137
19 DEC 1942 OUTWARD TELEGRAM (W. B. L. Monson.
[This Document is the Property of His Britannic Majesty's Government, and should be
With the Complimentkept under Lock and Key.]
of the
Uncer Secretary of State
for Foreign Affairs,
[This telegram is of particular secrecy and should be retained
by the authorised recipient and iot passed on]. F.8299/828/10), [Cypher].
WAR CABINET DISTRIBUTION.
To: CHINA.
MOST SECRET
USUAL DISTRIBUTION
No. 1601
FROM FOREIGN OFFICE TO CHUNGKING.
18th December, 1942.
D. 7.15 poll,
18th December, 1942.
Repeated to Washington No. 558 SAVING.
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IMMEDIATE.
173 ity].
175
15
Your telegram No. 1677 [of 15th December:
extraterritorial-
Article 6. Please continue to press for the insertion of the words "and carrying on of commerce". You might point out that (1) His Majesty's Government though pre ferring to defer navigation questions to the later treaty, ha e met the Chinese desire to deal with them now (see below) and (2) our text exactly carries out Chinese idea of stating principle of national treatment while reserving elaboration for commercial treaty.
2. Overseas merchant shipping. We accept the first paragraph of the formula in your telegram No. 1679 [of 15th December] regarding overseas shipping in place of paragraph 1 (a) of our exchange of notes subject to the necessary formal amendments, including definition of vessels. Text is given in my immediately following telegram.:
It
3.
Coastal trade and inland navigation. We also accept the second paragraph of the formula in your telegram No. 1679 subject to formal amendments and the addition proposed by you in paragraph 3 (a) of that telegram. We also desire the insertion of a proviso at two points which adopts your suggestion about reciprocity in a manner which we regard as acceptable. is designed to ensure that we shall not be obliged under the most-favoured-nation provision to grant China the right to engage in coastal trade and inland navigation in British territories unless China grants us a similar right.
The additional sentence which you propose at 3 (b) is, we think, unnecessary, since navigation is mentioned in Article 8. Finally you should ask that the following be recorded in an agreed minute: reference to paragraph (insert number) of the exchange of notes His Majesty's Ambassador informed the Chinese Government that trade between India on the one hand and Burma or Ceylon on the other has always been regarded as coasting trade".
"With
4. Clause 3 of the exchange of notes. Subject to the views of the Government of India, who are being consulted urgently, we are prepared to authorise you to drop the provision as to restrictions on travel and residence, leaving this matter to go without saying.
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