793.003/969a (Suppl): Telegram

The Secretary of State to the Ambassador in the United Kingdom (Winant)

5440. Department’s 5325, October 27, 5 p.m., paragraph numbered 2.

1.
After further study, we suggest that the text of an article with regard to coastal trade, inland navigation and related questions, for possible insertion in the draft treaties on extraterritoriality, might be phrased mutatis mutandis as follows:

“The Government of the United States of America relinquishes the special rights which vessels of the United States of America have been accorded with regard to the coastal trade and inland navigation, and the special rights which naval vessels of the United States of America have been accorded, in the waters of the Republic of China.

The Government of the United States of America and the Government [Page 342] of the Republic of China mutually agree that the merchant vessels of each country shall be permitted freely to come to the ports, places, and waters of the other which are or may be open to foreign commerce, and shall receive in such ports, places, and waters treatment not less favorable than that accorded to national vessels or the vessels of the most favored nation. The coasting trade and inland navigation of each country are exempt from the requirement of national treatment, and are to be regulated according to the laws of each country in relation thereto. It is agreed, however, that vessels of either country shall enjoy within the territory of the other with respect to the coasting trade and inland navigation the most-favored-nation treatment.”

Such an article might be inserted in the draft treaties as a new Article V, the present Article V being renumbered Article VI, et cetera.

2.
Please communicate the foregoing to the British Foreign Office and state that we should appreciate receiving at an early date any comments which the British Government may have to make.
Hull