793.003/1033: Telegram
The Secretary of State to the Ambassador in China (Gauss)
1225. Your 1471, December 10, 3 p.m.
1. For your confidential information, we are informing the British that we are inclined to accept the Chinese suggestion for a revision of the proposed article on inland navigation and coasting trade but that we now prefer to cover this as well as other matters relating to shipping in the exchange of notes, our reason for preference being that the Chinese suggestion contains language which does not seem from the technical drafting point of view to fall appropriately within the framework of the formal article on these subjects which we usually have in our treaties with other countries.
The appropriate portion of the exchange of notes (to follow the provisions relating to treaty ports, special courts and foreign pilots and to precede the paragraph relating to naval vessels) would accordingly read as follows: [Page 401]
“It is mutually agreed 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 open 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 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.”
2. Also for your confidential information, as regards Dr. Soong’s suggested additional exchange of notes mentioned in the concluding paragraphs of your telegram under reference, we do not consider that this addition is required for our purposes.
We expect shortly to be in position to inform the Chinese that the suggestion first mentioned above is acceptable and to proceed to arrange a definite date in the near future for the signing of the treaty. We shall expect to keep you informed in the premises.
3. The Department appreciates the efforts which you have made in this matter.