OUTWARD TELEGRAM
[This Document is the Property of His Britannic Majesty's Government, and should be
kept under Lock and Key.]
[This telegram is of particular secrecy and should be retained
by the authorised recipient and not passed on].
(F 7976/828/10)
[CYPHER ].
WAR CABINET DISTRIBUTION
TO CHINA
No: 1532
FROM FOREIGN OFFICE TO CHUNGKING
November 30th, 1942.
D. 4.30 p.m. November 30th, 1942.
Repeated to Washington No. 521 Saving (by bag).
11111.
24=
IMPORTANT
My telegram No. 1522 [of 26th November: extra-territoriality]. United States Government have now replied to Chinese counter- proposals and as a result of further consultation between us, His Majesty's Government have decided that you should now act as instructed in my telegram under reference, subject to the following modifications.
2.
Additional article. You should speak as in paragraph 3, but in an endeavour to meet Chinese wishes you should offer to amend paragraph 2 of the preamble as follows:- "Being desirous of defining more clearly the general relations between them in a spirit of friendship on a basis of equality and in accordance with modern international practice".
3. Article 3, Clause (ii), Article 4, Clauses (ii), and (iv). See paragraph 7 of my telegram under reference. But if it will meet Chinese difficulty you may at your discretion offer to omit from all three clauses the phrase "and for the recognition and protection of all legitimate rights therein". We conceive that this phrase might have provided some protection for reputable private interests in the areas which are being handed over. It was not our intention to ask that such interests should be indefinitely maintained if they were in conflict with the Chinese laws and regulations, but to expect that if they were expropriated or otherwise liquidated, adequate compensation should be paid.
4. Kowloon. You should say that you still await instructions.
5. Article 5. See paragraph 10 of my telegram under reference. We now agree to accept proposed restriction in first clause of this Article subject to Chinese agreeing to paragraph 2 in notes of which text iš given in my immediately following telegram.
6. Article 6. United States Government are agreeing to give up national treatment for their commerce since they are unable to reciprocate owing to difficulties of state and federal legislation. But as we can reciprocate in the territories to which Treaty
applies/
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