CO129-588-24 China- British extra-territorial rights- negotiations with China 23-11-1942 - 1-1-1943 — Page 153

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(b) The Government of the United States concurs in the addition in the second paragr ph of Article IV of the American draft of the first part of the proposed sentence, as follows: "It is also agreed that these rights or titles shall be subject to the laws and regulations of the Republic of China concerning taxation, national defence and the right of eminent domain." As regards the further language proposed by the Chinese Government that such rights or titles may not be alienated to the government or nationals of any third country without the express consent of the Chinese Government, if after further consideration the Chinese Government continues in its desire to include in Article IV a provision along those lines, the Government of the United States would not be inclined to raise objection provided that the Chinese Government for its part should see its way clear tomaking a decaration in a supplemental note to the effect that the restriction on the right of alienation of existing rights and titles to real property in question would be applied in an equitable manner and that if and when the Chinese Government should decline to give assent to a proposed transfer the Chinese Government would undertake, if the american party in interest should so desire, to take over the right or title in question and pay adequate compensation therefor.

Four. The Government of the United States is prepared, in response to the wish of the Chinese Government, to concur in the deletion from Article V of the American draft of the words "and to the carrying on of commerce", and is agreeable to deferment of this subject for regulation in the comprehensive treaty to be negotiated in future.

Five. As regards the amendment to article VI of the American draft proposed by the Chinese Government, it has been the concept and assumption of the Government of the United States that upon the abolition of extraterritoriality and related special rights in China the Chinese Government would of course wish to accord to the United States, its officers and other nationals rights similar to those normally enjoyed in friendly countries under modern international practice. In the light of tria concept and assumption and of the favourable attitude which this Government has adopted and is prepared to continue toward requests of the Chinese Government for the opening of Chinese consular offices in American territory, and in the expectation that the Chinese Government would not perceive objection to the opening of American consular offices at such places in China ss would be appropriate, this Government would be inclined not to raise objection to the suggested change.

31x. As mentioned heretofore, it has been the concept of the Government of the United States that the interests of both countries could best be served at this time by the conclusion of a brief treaty along broad general lines and containing no unnecessary particularization. Nevertheless, while some of the matters mentioned in the suggested exchange of notes (such as special courts in the International Settlements at Shanghai and Amoy) would seem to be covered in general by the provisions of the draft treaty, and some other points (such as inland navigation and the visits of foreign warships) are not ctually related to the question of extraterritoriality, the Government of the United States perceives no objection to an exchange of notes covering various matters of interest to either Government.

In this connection there is appended a suggested new draft note from the Chinese Government to cover various questions raised by the Chinese Government, including the questions of coasting trade, inland navigation and visits of naval vessels, as well as matters which the Government of the

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