CO129-588-24 China- British extra-territorial rights- negotiations with China 23-11-1942 - 1-1-1943 — Page 285

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4. We purceive no objection to the British Government's expressing to the Chinese Goverment the hope that the Chinese Government will continue to maintain the administration of the customs service as at present constituted both in China's own interests and those of the holders of bonds secured by the customs revenue. We do not, however, for our part, focl in position to make reference to the matter in the proposed exchange of notes or to make to the Chinese Government any formal representations in the matter in connection with this

treaty.

5. As rogards the Chinese suggestion that there be inserted in the exchange of notes a sentence in regard to questions which affect the sovereignty" of China, we assume, and the Chinese Embassy here has indicated to us that it similarly assumes, that this sentence is intended to cover various possible questions such as the employment of a foreign national as inspector gencral of the Chinese Maritime Customs, the cmployment of foreign engineers, et cetera, for certain railways, et cetera. slu, for our part, are prepared to accept the Chinese suggestion as indicated in our messare of November 24th.

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6. It is believed that, with the above, we h. ve now reached substantial agreement with the British Government or have come as closely as is possible within the necessary framework of our concepts, policies, and practices to pralleling the British suggestions. Accordingly we expect, unless the British Government has in mind modifications that will be compatible with the requirements of the situation from the standpoint we feel impelled to adopt. to proceed with the preparation, along the lines we have indicated, of a document to be handed on Friday, November 27th (or at the latest on Saturday, November 28th) to the Chinese Embassy in reply to the Chinese document presented on November 10th to us.

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