CO129-588-24 China- British extra-territorial rights- negotiations with China 23-11-1942 - 1-1-1943 — Page 175

".

WITH THE COMPLIMENTS

Ist. 0749/42,

OF THE

UNDER SECRETARY OF STATÉ

•KDE61

DEE 1942

FOR INDIA.

No. of words 233.

164 176

ypher telegram from Secretary of State to Government of India, External Affairs Department, dated 9th December, 1942.

Ref. 1.0 Letter - 9.12.42. No Ext 6744/6 X X X |

*

Important

21190.

Treaty.

SECRET

Your telegram 9763 dated 8th December, China

2. Meaning was that India would be mentioned at end of exchange of notes relating to acquisition of real property as being expressly excluded from this Agreement only.

3. H.M. G. would have liked to secure an agreement whereby our nationals would have the right to acquire and hold rights of all kinds in real property in China on the same conditions as Chinese notionals and companies. It would have been necessary, however, to make the similar Chinese right subject to certain conditions in England and some Colonies and probably either to exclude India and Burma or to attach reservations which would not have enhanced the value of our proposal from the Chinese point of view. As there seems little prospect of the Chinese accepting such conditions the Ambassador is being given authority to obtain the best text possible. The following formula has been suggested: -

"It is understood that the abolition of the system of Treaty ports will not affect the existing property rights and that nationals of each high contracting party will enjoy the opportunity to acquire and hold real property in the territories of the other high contracting party subject to the laws and regulations of that high contracting party".

This is regarded as the absolute minimum since the concluding words could mean that these laws may prohibit the right to

secure real property altogether. An improvement on this formula would be to say "in accordance with the conditions and requirements prescribed in the laws and regulations etc." or alternatively "hold real property as far as possible under the same conditions as nationals of the latter high contracting party".

40

If any of the more general formulas in paragraph 3 above are adopted I assume that you would have no objection to accepting this for India. Please confirm urgently.

Copy to:- F.0., D.O., C.O.,

B.of.T., M.E.W.,B.O.