793.003/1033: Telegram
The Ambassador in China (Gauss) to the Secretary of State
[Received December 12—9:54 a.m.]
1471. For the Secretary and Under Secretary. Your 1193, December 6, 2 p.m. Foreign Minister received me this morning in presence of his legal advisers who do not find our proposed article on shipping acceptable in its present form. Briefly, it is contended that, while in the first paragraph of the article, we relinquish our special rights, the last sentence of the second paragraph might be construed by some as implying that some right[s] of coasting and inland trade continue to exist. Foreign Minister reiterated firm intention of China to insist on relinquishment of these rights by all treaty powers, commenting that if necessary China will unilaterally denounce such treaty provisions still existing.
Following redraft of proposed article was submitted for transmission to Department:
“The Government of the United States of America and the Government 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 country which are or may be opened to overseas merchant shipping, and that the treatment accorded to such vessels in such ports, places and waters shall be no less favorable than that accorded to national vessels and shall be as favorable as that accorded to the vessels of any third country.
The Government of the United States of America relinquishes the special rights which vessels of the United States of America have been [Page 400] accorded with regard to the coasting trade and inland navigation in the waters of the Republic of China. Should either country later accord the right of inland navigation or coasting trade to vessels of any third country such rights would similarly be accorded to the vessels of the other country. The coasting trade and inland navigation of each country are excepted 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 country with respect to the coasting trade and inland navigation treatment as favorable as that accorded to the vessels of any third country.”
In order to meet any desire we may have for further assurance that there would be no discrimination against our vessels, the Chinese Government would be prepared to agree to an exchange of notes to following effect:
“The Chinese Government declares that it is its firm intention to limit inland navigation and coasting trade to vessels of Chinese flag, and assures the Government of the United States that under no circumstances will American interests be discriminated against vis-à-vis any third country.”
Foreign Minister is instructing Ambassador at Washington in the foregoing sense.13
- On December 12, the Minister Counselor of the Chinese Embassy handed the note referred to above to the Assistant Chief of the Division of Far Eastern Affairs.↩