CO129-588-24 China- British extra-territorial rights- negotiations with China 23-11-1942 - 1-1-1943 — Page 279

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MESSAGE FROM DEPARTMENT OF STATE

DATED NOVEMBER 24, 1942.

Please refer to Department's message of November 21st and previous regarding the treaty on extrater- ritoriality.

1.

In the light of the modifications of the draft treaty suggested by the Chinese and our proposed counter suggestions, it is believed that in connection with the question of a supplemental exchange of notes we might appropriately present to the Chinese a draft text of the contemplated note from the Chinese Government in language somewhat as follows:

First Paragraph:

"Under instruction of my Govern- ment I have the honor to state that in connection with the treaty signed today by the Government of the Re- public of China and the Government of the United States of America in which the Government of the United States of America relinquishes its extraterritorial and related special rights in China, it is the understanding of the Government of the Republic of China that the rights of the Government of the United States of America and of its nationals in regard to the system of treaty ports and of special courts in the International Settlements at Shanghai and Amoy and in regard to the employment of foreign pilots in the ports of the territory of China are also relinquished. In the light of the abolition of treaty ports as such, the Government of the Republic of China desires to make known that the following ports in its territory are considered to be open to overseas merchant shipping of the United States of America: (It is assumed that here the Chinese Government will wish to insert the names of the ports which are normally opened to foreign commerce with, and the overseas merchant shipping of, friendly countries.) which are not covered by the present treaty and exchange of notes and which may affect the sovereignty of the Republic of China shall be discussed by representatives of the two governments and shall be decided in accord- ance with generally accepted principles of international law and with modern international practice.' 11 (The final sentence of this paragraph is a suggestion of the Chinese presented to the Department on November 17th.)

Questions

Second Paragraph: (If the Chinese suggestion of a reference to a restriction on the right of alienation is included in Article Four of our draft): "With re- reference to Article Four of the treaty, the Government of the Republic of China hereby declares that the restriction on the right of alienation of existing rights and titles to real property referred to in that article will be applied by the Chinese authorities in an equitable manner and that if and when the Chinese Government declines to give assent to a proposed transfer the Chinese Government

will/