793.003/1009a: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
5914. Department’s 5859, November 21, 3 p.m., and previous, treaty on extraterritoriality.
1. In the light of the modifications of the draft treaty suggested by the Chinese and our proposed counter suggestions, it is believed that, in connection with the question of a supplemental exchange of notes, we might appropriately present to the Chinese a draft text of the contemplated note from the Chinese Government in language somewhat as follows:
First paragraph:
“Under instruction of my Government, I have the honor to state that in connection with the treaty signed today by the Government of the Republic of China and the Government of the United States of America, in which the Government of the United States of America relinquishes its extraterritorial and related special rights in China, it is the understanding of the Government of the Republic of China that the rights of the Government of the United States of America and of its nationals in regard to the system of treaty ports and of special courts in the International Settlements at Shanghai and Amoy and in regard to the employment of foreign pilots in the ports of the [Page 370] territory of China are also relinquished. In the light of the abolition of treaty ports as such, the Government of the Republic of China desires to make known that the following ports in its territory are considered to be open to overseas merchant shipping of the United States of America: [It is assumed that here the Chinese Government will wish to insert the names of the ports which are normally opened to foreign commerce with, and the overseas merchant shipping of, friendly countries.]90 Questions which are not covered by the present treaty and exchange of notes and which may affect the sovereignty of the Republic of China shall be discussed by representatives of the two Governments and shall be decided in accordance with generally accepted principles of international law and with modern international practice.”
[The final sentence of this paragraph is a suggestion of the Chinese presented to the Department on November 17.]90
Second paragraph [if the Chinese suggestion of a reference to a restriction on the right of alienation is included in Article IV of our draft]:90
“With reference to Article IV of the treaty, the Government of the Republic of China hereby declares that the restriction on the right of alienation of existing rights and titles to real property referred to in that article will be applied by the Chinese authorities in an equitable manner and that if and when the Chinese Government declines to give assent to a proposed transfer the Chinese Government will, in a spirit of justice and with a view to precluding loss on the part of American nationals whose interests are affected, undertake, if the American party in interest so desires, to take over the rights and titles in question and to pay adequate compensation therefor.”
Third paragraph: This paragraph would cover the questions of the decisions of, and cases pending before, the United States Court for China and the United States Consular Courts as set forth in the quoted portion of paragraph numbered 2 of our 5758, November 17, 7 p.m.
2. It would be much appreciated if we could have at an early date the views of the British Government in regard to the above and other questions concerning the modifications suggested by the Chinese, including of course the further views of the British Government in regard to our proposed new article on the subjects of coasting trade, inland navigation, et cetera. It may be added that the Chinese are pressing us for formal reply to the document they handed to us on November 10 and we should, of course, wish to move forward in the matter as soon as practicable.