CO129-588-24 China- British extra-territorial rights- negotiations with China 23-11-1942 - 1-1-1943 — Page 177

With the Compliments

of the

Colonial Office.

Under Secretary of State OUTWARD TELEGRAM W.B.L. Monson. Esq)

[This Document is the Property of His Britannic Majesty's Government, and should be 78

for Foreign Affairs

10 DEC 1942

kept under Lock and Key.]

MOST SEORET

USUAL DISTRIBUTION

[This telegram is of particular secrecy and should be retained by the authorised recipient and not passed on.]

F. 81442/828/10

828/10.

[CYPHER

WAR CABINET DISTRIBUTION

TO: CHINA

FROM FOREIGN OFFICE TO CHUNGK ING

No. 1573

9th December, 1942

D. 6.15 p.. 9th December, 1942

Ail

Repeated to Washington No. 538 Saving.

IMMEDIATE

kkkkk

24

Your telegram No. 1615 [of 30th November: acquisition of real property), and my telegram No. 1541 [of 3rd December].

Text which we had prepared and should have liked to secure provided that our nationals and companies should have the right to acquire and hold rights of all kinds in real property in China on the same conditions as Chinese nationals and companies. It would have been necessary, however, to make the similar Chinese right subject to certain minor conditions of licensing procedure in England and sone West Indian colonies and it would probably have been necessary either to exclude India and Burma or attach important reservations which would hardly have enhanced the value of our proposal from the Chinese point of view.

2. While we should have preferred some thing on the above lines, you have full authority to obtain the best text you can ad referendum, it being essential if possible to obtain some reference to the future acquisition of real property in the present agreement. But formula suggested in paragraph 2 of your telegram under reference is the absolute minimum because the words "subject to the laws and regulations etc." could mean that these laws may prohibit the right to acquire real property! altogether. An improvement on your formula would be to say: "In accordance with the conditions and requirements prescribed in the laws and regulations etc.". Another and, from our point of view, better formula would be to say: "hold real property as far as possible under the same conditions as national: of the latter High Contracting Party".

3. It is probable that India and Burna would be able to participate in a formula on the lines of any of those mentioned in the previous paragraph, and you may proceed on this assumption, I am meanwhile taking steps to confirm this with the Governments of India and Burma.

OTP.