CO129-588-24 China- British extra-territorial rights- negotiations with China 23-11-1942 - 1-1-1943 — Page 283

MESSAGE FROM THE DEPARTMENT OF STATE

DATED NOVEMBER 25, 1942.

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It has been the earnest desire of the Department, of course, to meet British wishes in regard to various questions in connection with the draft treaty on extraterritoriality and supplemental exchange of notes to the greatest extent that would be compatible with our broad interests and fundamental policies. In response to Mr. Eden's suggestions contained in your telegram under reference (Mr. Eden's letter of November 23rd) and in the light of the wish of both Goverments to get forward in the matter, the question what means might be adopted to enable us to come closely to paralleling, if not in all cases adopting, the British suggestions has been given further study and us & result we offer comment and suggestions as the basis of reply to Mr. Eden as follows:

1.

(1) Our suggestion in this respect was contained in our message of November 21st.

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(2): (3), (a) and (b) see our message of November 21st with further reference to (3) (b) wo intend as indicated in our mussage of November 24th to incorporate the Chinese suggestion in full in Article 4 of our draft.

(4) The British suggestion in regard to the reference, inserted in Article 5 of our draft, to "the carrying on of commerco": as previously explained this question tends to raise difficult questions of state and Federal jurisdiction in this country. Consequently we have not been happy about the matter; we feel that the fundamental difficulty involved has not been adequately taken care of; and, now that the Chinese have raised objection to the inclusion of the phrase and havo pointed out that it involves a matter which most appropriately might be covered by the subsequent

comprehensive treaty, we do not feel that we can consistently do other than accept the Chinese suggestion that it be deleted, especially as it is believed that there is

little if any possibility of overcoming Chinese opposition to inclusion of the phrase.

(5) Agreement has been reached in regard to

this question.

(6) This question was covered in our message of November 21st. We now propose, in the light of the modification of the provision concerning coasting trade and inland navigation discussed in paragraph numberod 3 below to insert in the suggested note from the Chinese Government after the ruference to treaty ports a sentence as follows: "As regards the question of the treatment of overseas merchant shipping, it is mutually understood that the vessels of cach country shall be permitted freely to come into the ports, places, and waters. of the other country which are or may be open to overseas merchant shipping and that the treatment shall be no less favourable than that accorded to national vessels and shall be as favourable as that accorded to the vessels of any third country".

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