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This telegram is of particular secrecy and should be retained by the authorised recipient and not passed on].
CYPHER]
WAR CABINET DISTRIBUTION.
FROM CHINA.
FROM CHUNGKING TO FOREIGN OFFICE.
Sir H. Seymour.
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D. 3.20 p.m.
No.1677.
R. 7.45 p.m.
December 15th 1942. December 15th 1942.
December 15th 1942.
IMMEDIATE.
My telegram No.1635.
Following is report of further meeting on December 14th.
2. The Chinese agree to drop their article 1 and prefer to leave the preamble as originally drafted. We await their decision as to which original is to be followed since. we have accepted their re-draft.
3. Article 3 and article 4. The Chinese agree to drop the words "always provided such rights are consonant with, etc," and clauses therefore stand as in our original draft, regards Kowloon, see my immediately following telegram.
4. Article 5. The Chinese accept the amended version contained in paragraph 9 of your telegram No.1522 in place of the words "or other illegal practice".
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The
5. Article 6. The Chinese still oppose the insertion of the words "and carrying on. of commerce" but will givej further consideration to our counter proposals to re- insert them and to begin the sentence with the words "panding the conclusion of comprehensive treaty etc" Chinese attitude is that they accept the principle of national treatment for commerce but desire to reserve the point for commercial treaty negotiations. We urged that if this was their attitude there could be no objection to saying SO. I request instructions as to whether I should in the last resort concede this point or not.
6. Apart from the question of Kowloon, the text of treaty is therefore agreed except for point referred to in preceding paragraph.
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