793.003/632: Telegram

The Minister in China (Johnson) to the Secretary of State

My April 23, 4 p.m.

1.
British Minister informs me that his present position regarding negotiations is as follows:
Articles 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, and 13 and the articles concerning nondiscriminatory treatment, British protected persons, the three declarations, the exchange of notes and the letter regarding arbitration law have been agreed upon.
2.
Article 8 now reads:
  • “(1) All rights in immovable property held by British subjects in China shall be recognized as valid and shall remain undisturbed subject to the exercise of the right of eminent domain by the Chinese Government.
  • (2) The property whether movable or immovable of British subjects in China shall not be expropriated or requisitioned except for reasons of interest recognized by the law as such and only after adequate compensation has been paid.
  • (3) Any dispute regarding the amount of compensation to be paid shall be determined by reference to the competent administrative organ or the competent modern court of justice at the option of the [Page 830] British subject concerned in accordance with Chinese law. Where such cases are brought before the modern courts of justice the provisions of article No. 2 (Special Chambers) and article 3 (legal counselors) of the present treaty covering the hearings of cases in which British subjects are involved as defendants will apply.”
3.
In article 9, immunity of premises, see the paragraph No. 11 of my March 17, noon, the word “requisition” has been changed to “occupation”.
4.
British Minister has not yet heard from London about article 5, see paragraph No. 3 of my April 19, 4 p.m.
5.
Article 11, see paragraph No. 4 of my April 19, 4 p.m., has been agreed to.
6.
The reciprocity clause has been deleted from article 10, military requisitions and forced loans, and may be incorporated in the agreed minute the text of which, covering matters such as immunity of court from external interference, lawyers, et cetera, is still before British Foreign Office.
7.
Reciprocity clause has been dropped from article 7, arbitration.
8.
As regards personal status the following draft which is understood to be acceptable to Dr. Wang has been referred to the British Foreign Office:
  • “(1) In all matters of personal status, among which are included all questions relating to marriage, conjugal rights, divorce, judicial separation, dower, paternity, affiliation, adoption, capacity, majority, guardianship, trusteeship and interdiction, and in all matters relating to succession to personalty whether by will or on intestacy, and to the distribution and winding up of estates and family law in general, English law will be applied by the Chinese courts as regards British subjects in China.
  • (2) All such cases of personal status where only British subjects are concerned will at the option of the parties concerned be dealt with outside the jurisdiction of the Chinese courts.
  • (3) British consular officers shall take possession of and administer the estates of British subjects dying in China in all cases where no objection to such administration has been filed by an interested party in writing at a British consular office in China within 90 days’ notice of death announced by the competent consular office. In case of intestacy where there is no heir the immovable property of the deceased will be disposed of in accordance with the laws of China.
  • (4) In all the above-mentioned matters the principles of private international law will be likewise applied by the British courts as regards Chinese citizens in Great Britain without any discrimination against them as compared with the nationals of any other country.”
9.
As regards publication and communication and translation of codes, British and Chinese are at present deadlocked.
10.
As regards rights of residence British Minister has referred to his Foreign Office the following text offered by Dr. Wang:

“British subjects shall, subject to Chinese laws and regulations, enjoy in China the right to travel, reside, establish firms, open branches, transact business, acquire or lease property, work and engage in industry or commerce, in all the localities where the nationals of any other country shall be permitted to do so, and in the same manner as the nationals of any other country, provided that where any rights in the same matters are granted to the nationals of any other country only upon the fulfillment of certain conditions, such conditions must also be fulfilled before British subjects are allowed to enjoy the same rights. It is understood that the existing rights of British subjects in respect of the above matter will remain unimpaired.”

11.
There remain outstanding to be discussed the following articles: Continuance of existing treaties except as modified; authoritative text (probably French); duration and ratification; excluded areas.
Johnson
  1. Telegram in two sections.