CO129-588-24 China- British extra-territorial rights- negotiations with China 23-11-1942 - 1-1-1943 — Page 170

171

territoriality.

11th.

(Communicated in letter from United States Ambassador of 10th

December).

1. On December 8 we received the reply of the Chinese Government to our document of November 27. There follows below the substance of the Chinese Government's reply:

(a) With regard to the text of the proposed treaty:

(1) The Chinese Government withdraws its proposal for a new Article une and mentions that the principle of the Article has been embodied in the revised text of the preamble.

(2) The Chinese Government withdraws its proposal that additional language be added at the end of the second paragraph of Articles Two and Three of the American ŭraft.

(3) The Chinese Government accepts the sug- gested revision of the end of the First sentence of Article Four beginning of fraud or of fraudulent or other dishonest practices".

4) The Chinese Gove nment desires that the entire sentence beginning "It is also agreed that these rights or titles", be incorporated in Article Four and expresses its wil ingness to make the declaration with regard to the latter part of this sentence in the accompanying exchange of notes in the terms suggested by this Government.

(b) with regard to the text of the proposed exchange

of notes:

The Chinese Government concurs in the revised text of the exchange of notes as proposed by this Government with the following exceptions:

(1) Instead of naming the ports normally opened to foreign commerce the Chinese Government suggests inserting the following sentence "In the light of the abolition of treaty ports as such, it is understood that all coastal ports in the territory of the Republic of China which are normally open to American overseas merchant shippin will remain open to s ch shipping after the coming into ef ect of the present treaty and the accompanying exchange of notes".

(2) In place of the provision with regard to inland navigation and the coasting trade the Chinese Government suggests the insertion of the following "It is mutually understood that the Government of the U.S. of America relinquishes the special rights which vessels of the U.S. of America have b.en accorded in connection with the coasting trade and inland navigation in waters of the

epublic of China and that the Government of the Republic of China is prepared to take over any American properties that may have been engaged for those purposes and to pay

adequate/

Page 170Page 171