139
(a) Visita by warships
(e) Appointment of Inspector General of the Chinese Customs (f) Legal matters arising from abolition of extra-territorial
courts
If, however,
(g) Coastal trade, and inland navigation. Ambassador has been instructed in the first place to speak to
His Majesty's the Chinese Government along the lines of the penultimate sentence of paragraph 4 of my telegram D. No. 463. Chinese Government insiat on the inclusion of this subject in Exchange of Notes, United Kingdom Government will be willing to comply on the following lines:- We relinquish ell existing treaty rights relating to the participation of our merchant vessels in the coastal trade and inland navigation of China. For their part the Chinese Government, while reserving the right to restrict this trade to Chinese vessels, declare that, as Chinese veusels are at present permitted to engage in the coasting trade and inland navigation of the territories of His Majesty to which the Treaty applies, they do not contemplate introducing restrictions which will prevent the participation by merchant vessels of His Majesty in these trades pending the conclusion of the comprehensive treaty. His Majesty's Ambassador has also been informed, for his own information, that we should be prepared in the last resort to. accept Chinese Government's undertaking in respect of coastal trade only.
(h) Paragraph recording agreement that question which may affect the sovereignty of China and which are not covered by the present Treaty or Notes shall be discussed by representatives of Chinese and United Kingdom Governments and decided in accordance with generally accepted principles of international law and modern practice. (Similar phrase is being included by United States Government in their draft exchange of notes. originated with Chinese Government).
Suggestion
2. Full text of latest revise of draft Treaty and of draft Exchange of Notes (latter covering other relatively minor matters in addition to these mentioned above) will be telegraphed at length if desired, but unlese specially requested it will be assumed that Dominion Governments will prefer to await reply of Chinese Government to these further proposals. Further telegram will also be sent in due course on subject of Kowloon. Copy to:-
V.C.O.
F.0.
Sir E. Bridges Sir B. Newton
1.0.
B.0.
C.O.
•
Treasury D.O.T. B/Trade
Mr. Ashley Clark Mr. Rumbold
Kr. Annan
· Mr Monson
Mr. Young'
Mr. Golsby Mr. Fraser.
:
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Private notes are available after approval.