TNAG-0943-FCO40-1162-Future-of-Hong-Kong-1980 — Page 225

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of Chinese territory, though encumbered with certain

restrictions in regard to the exercise of administrative

rights therein by the territorial sovereign. They are creatures of compact different from cession in fact and

in law".

regarding extraterritoriality

at these Conferences

were

Although the demands/were unsuccessful the foundations clearly laid for future Chinese challenges to extraterritorial,

rights granted by "unequal treaties". The important distinction between cessions and leases suggested an accession

to the former but a demand for "readjustment" of the latter

along with the issues regarding extraterritoriality.

13.

a

The specific contention over extraterritorial rights was finally removed by treaty concluded between China and Britain on 11 January 1943

The British Government had taken the decision to revise

extraterritorial rights in China as early as June 1931.

Agreement was then reached on a ten-year transition period

for the eventual abolition of British extraterritoriality,

concessions, settlements, legation quarters, and the right

to station British warships in Chinese waters and British

troops on Chinese soil. Progress on the relinquishing of

these rights, however, was delayed by the Japanese invasion

and occupation of parts of China. The Chinese Government

then welcomed the British presence.

14. With the entry of the Allied Powers into the war

against Japan, it became all the more important for Britain

to ensure the recognition of China as an equal and an ally. The treaty between Britain and China signed in Chongching (Chungking) on 11 January 1943 relinquished all of Britain's /extraterritorial

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