CO129-588-24 China- British extra-territorial rights- negotiations with China 23-11-1942 - 1-1-1943 — Page 92

F.7/34.

CYPHER (TYPEX)

anexa of the

کیا

i for Dominion

2 € DEC 1942

Adinina.

OUTWARD TELEGRAM

210 92

FROM:

D.O.

TO:

CANADA

(GOVT.)

AUSTRALIA

NEW ZEALAND

SOUTH AFRICA

18

(Sent 1.0 p.m. 26th Dec., 1942).

9.D.

187

·

D. No. 583 SECRET.

My telegram D. No. 575 of 24th December. Chinese extra- territoriality.

territor

Following is latest position as regards principal outstanding points in negotiations:-

(1) Overseas Merchant Shipping.

Chinese Government have asked for change which will in effect limit application of first paragraph of summary of draft Article contained in my telegram D. No. 562 of 19th December, paragraph (2), to coastal ports etc. We have reluctantly agreed.

(2) National treatment for the carrying on of commerce.

His Majesty's Ambassador has been instructed to continue to press for this until the last moment, but if Chinese opposition cannot be overcome, he has been authorised to give way. In that case, however, he will call the attention of the Chinese Government in a unilateral note to their statement to the effect that they accept principle of national treatment for commerce. (See my telegram D. No. 559 of 17th December, paragraph 1(c)).

(3) His Majesty's Ambassador was also instructed to raise with Chinese Government question of recording in an agreed minute or otherwise that neither H. C.P. sháll claim the right to protect persons in the territories of the other H.C.P. who possess the nationality of the latter H.C. P. in addition to the nationality of the former. Reason for raising this matter is that whilst United Kingdom Government would in fact apply this principle, which is a general international rule with regard to master nationality, Chinese have in the past shown some disposition to ignore it. His Majesty's Ambassador has now been instructed that if Chinese Government refuse to accept our proposal, which they show some signs of doing, he should place on record that statement in first sentence of this paragraph represents our view of the law.

(4) United States Government have now reached agreement on all points and their treaty will be signed on 1st January. We should like to sign on same date if Chinese Government accept our solution for question of Kowloon leased territory (see my telegram D. No. 575 of 24th December) and our amended text for navigation clauses in exchange of notes (see my telegram D. No. 562 of 19th December, paragraph (2), and paragraph (1) above).

DISTRIBUTION OVERLEAF.