793.003/1020: Telegram

The Ambassador in China (Gauss) to the Secretary of State

1407. In conversation with me this morning Foreign Minister referred to the American reply to Chinese proposals regarding treaty and said that China would like to stick to the original text of proposed exchange of notes so far as concerns inland navigation and coastal shipping. He said China places much importance on this point. He remarked that heretofore the only American observation on proposed exchange of notes had been to suggest insertion of word [Page 384] foreign before word pilots. He is instructing Chinese Ambassador Washington but said that meanwhile he wished to mention matter to me. He made no other comments regarding treaty.

British Ambassador tells me that London has asked for an explanation of what is meant in last sentence of Chinese draft of exchange of notes by statement in regard to discussion and settlement of matters which affect Chinese sovereignty. He proposes to ask Foreign Minister for explanation.

Gauss