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106 Eggleston to Evatt

Dispatch 63 CHUNGKING, 20 January 1943

I have the honour to report that this morning I presented to the
Minister for Foreign Affairs a draft treaty for the abolition of
extra-territoriality between His Majesty's Government in the
Commonwealth of Australia and the Republic of China.

On receipt of your telegram No. SC. 1 of the 16th January, 1943
[1], I at once prepared a fresh draft of the Treaty and
immediately asked for an interview with the Minister for Foreign
Affairs, whom I saw at 11.00 a.m. on Wednesday 20th January, 1943.

The draft treaty which I presented to Dr. Soong included Articles
I, II, III, IV and VIII of the draft which I had the honour to
telegraph to you in my Telegram No. S.149 of the 28th November,
1942. [2]

I interpreted your instructions to negotiate these articles on the
lines of my draft as giving me some liberty in the matter of
verbage and I therefore decided to adopt the wording which had
been accepted in the British Treaty [3] where it differs from mine
only in the matter of drafting. I did this because I felt that the
Chinese, after having had a long bout with the British and
Americans, would resent discussing alternative drafting and might
be more disposed to make this the occasion for introducing new
matters and thus the negotiations would be prolonged and less
satisfactory.

It is necessary to strike while the iron is hot and while they are
in the mood. There is to be a celebration for three days,
commencing on the 5th February, on the abrogation of
extraterritoriality and the Unequal Treaties and I hope that our
treaty will be completed before this date.

I enclose a fair copy of the draft I have presented. Your
amendment to Article I (1) is included. [4] Mistakes seem to have
crept into the original draft from my manuscript.

With regard to Article I (2), the words 'domicile or home' are
inserted in the definition of Australian nationals. I feel sure
that this definition would have been questioned in the case of
Chinese nationals because the Chinese claim to protect Chinese who
have lived overseas for generations and they have the doctrine of
dual nationality. This would have raised a point and might have
caused some trouble. As the phrase 'Chinese nationals' does not
appear in the Treaty as now presented, it seemed unnecessary to
define it so I have omitted it and the same thing applies to
Article I (3). My Telegram No. S.9 [5] explains the position of
other amendments suggested or made.

In Article III of the Sino-British Exchange of Notes, the Chinese
Government agreed to give the British power to acquire land in a
very guarded form-it is subject to Chinese laws and regulations
and about this as you are averse to discussing the matters in
Article V now omitted and the same questions would be raised.

There is no doubt in my mind that the Chinese intend to raise the
question of equality of treatment at some stage and their
withdrawal of Article I in their draft [6] only suggests to me
that they believe a more convenient occasion will arise. They
probably have the peace negotiations in mind. Here, if the
precedent of 1919 holds, they will most certainly get a majority
behind them. This is the reason why I put it to you, as I did to
Mr. W. M. Hughes [7] in 1919, that such a general clause would do
good in satisfying the Chinese with a formal declaration provided
that you get a positive admission that immigration is a matter of
domestic jurisdiction; this would give Australia a very definite
advantage. The latter proposition is one which I think will almost
certainly secure a majority in a peace conference. I regard the
question as postponed.

When I presented the draft, I explained to Dr. Soong that it had
always been the intention of His Majesty's Government in the
Commonwealth of Australia to associate itself in some way with the
abrogation of the 'Unequal Treaties', an act which we had long
felt must be taken. I had now been instructed to ask for the
negotiation of a treaty on this matter and to this end had
prepared a draft which I handed to Dr. Soong. I pointed out that
the draft followed closely on the British and American Treaties.

Dr. Soong expressed his pleasure at the decision of His Majesty's
Government in the Commonwealth of Australia. He added that
Australia was in the position of a successor state to one of the
signatories of the original Treaty and it was, therefore,
desirable, from the point of view of completeness, that we should
be a party to the abrogation. He enquired whether the Exchange of
Notes had been included in the draft and I explained that it had
not, as most of the matters with which we wished to associate
ourselves were covered in the Treaty. He promised to study the
draft.

Copies of this despatch are being sent to His Majesty's Australian
Ministers at Washington and Kuibyshev and the Australian Minister
to the Netherlands.

[F. W. EGGLESTON]


1 On file AA:A989, 43/305/2, v. It instructed Eggleston to open
negotiations with the Chinese on Articles 1-4 and 8 of the draft
treaty only, pointing out that while Eggleston's drafts of
Articles 5-7 'skilfully avoid many of the difficulties inherent in
the United Kingdom draft their subject matter would be open to
misconstruction and uneasiness on part of Australian public'.

2 On file AA:A981, China 60B, ii.

3 Details of the British draft are contained in Eggleston's
cablegram S145 (received in Canberra on 29 November 1942) on the
file cited in note 2.

4 Evatt's amendment had been communicated to Eggleston in the
cablegram cited in note 1.

5 Received in Canberra on 19 January. On the file cited in note 1.

6 See Eggleston's cablegram S140 of 14 November 1942 and Attlee's
circular cablegram D463 of 16 November 1942 on the file cited in
note 2. The Chinese Article 1 provided that relations between the
United Kingdom and China should be on a basis of reciprocity.

7 Prime Minister 1915-23 and leader of the Australian delegation
to the Versailles Peace Conference in 1919. Eggleston had also
been a member of the Australian delegation.

ENCLOSURE

Sino-Australian Treaty

His Majesty the King of Great Britain, of Ireland and of the
British Dominions beyond the seas, Emperor of India (hereinafter
referred to as His Majesty the King) and His Excellency the
President of the National Government of the Republic of China [1]:

Being desirous of defining more clearly in a spirit of friendship
the general relations between the Government of the Commonwealth
of Australia and the Republic of China and for this purpose to
settle certain matters relating to jurisdiction in China:

And as treaties to settle certain like matters have been concluded
between His-Majesty the King for the United Kingdom of Great
Britain and Northern Ireland and for India:

Have decided to conclude a Treaty for this purpose and to that end
have appointed as their Plenipotentiaries:

His Majesty the King for the Commonwealth of Australia:

His Excellency the President of the National Government of the
Republic of China:

Who, having communicated to each other their full powers found to
be in good and due form, have agreed as follows:-

ARTICLE I

(1) The territories of the High Contracting Parties to which the
present Treaty applies are, on the part of His Majesty the King,
the Commonwealth of Australia and all territories and places
administered by or under the authority of His Majesty's Government
in the Commonwealth of Australia, including any territory
administered by His Majesty's Government in the Commonwealth of
Australia in pursuance of a Mandate; and on the part of His
Excellency the President of the National Government of the
Republic of China, all the territories of the Republic of China.

Any reference in subsequent articles of the present Treaty to the
territories of one or the other High Contracting Party shall be
deemed to relate to those territories of that High Contracting
Party to which the present Treaty applies.

(2) In the present Treaty, the term 'Australian nationals' shall
mean British subjects and all British protected persons whose
domicile or home was in the territories of His Majesty to which
this Treaty applies.

(3) The expression 'Australian companies' shall be interpreted as
meaning limited liability and other companies, partnerships and
associations constituted under the law of the territories of His
Majesty to which the present Treaty applies.

ARTICLE II

His Majesty the King for the Commonwealth of Australia agrees that
all those provisions of treaties or agreements in force between
His Majesty the King and his Excellency the President of the
National Government of the Republic of China which authorise His
Majesty or his representative to exercise jurisdiction over
Australian nationals or companies in the territory of the Republic
of China shall be abrogated and that Australian nationals and
companies shall be subject in the territory of the Republic of
China to the jurisdiction of the Government of the Republic of
China in accordance with the principles of international law and
practice.

ARTICLE III

(1) His Majesty the King for the Commonwealth of Australia
considers that the Final Protocol concluded at Peking on the 7th
September, 1901, between the Chinese Government and other
Governments, including His Majesty's Government in the United
Kingdom, should be terminated and agrees that the rights accorded
to His Majesty's Government in the United Kingdom under that
Protocol and under the agreements supplementary thereto shall
cease and also that the International Settlements at Shanghai and
Amoy and the British Concessions at Tientsin and Canton should
return to the control and administration of the Government of the
Republic of China and agrees that the rights accorded to His
Majesty in relation to the said settlements and Concessions shall
cease.

(2) His Majesty's Government in the Commonwealth of Australia
will, if necessary, co-operate in any action legally required for
the transfer to the Government of the Republic of China of the
administration and control of the Diplomatic Quarter at Peking and
the said International Settlements and the said British
Concessions, it being mutually understood that all legitimate
rights acquired by Australian nationals and companies or His
Majesty's Government in the Commonwealth of Australia in such
Diplomatic Quarter and in such Concessions and Settlements shall
be recognised and protected by the Government of the Republic of
China.

ARTICLE IV

(1) In order to obviate any questions as to existing rights in
respect of or as to existing titles to real property in the
territory of the Republic of China possessed by Australian
nationals and companies or by His Majesty's Government in the
Commonwealth of Australia and, in particular, questions which
might arise from the abrogation of the provisions of treaties and
agreements provided for in Article II of the present Treaty, the
High Contracting Parties agree that such existing rights or titles
shall
be indefeasible and shall not be questioned upon any ground except
upon proof established through due process of law, of fraud or of
fraudulent or dishonest practices in the acquisition of such
rights or titles, it being under stood that no right or title
shall be rendered invalid by virtue of any subsequent change in
the original procedure through which it was acquired. It is also
agreed that the exercise of these rights or titles shall be
subject to the laws and regulations of the Republic of China
concerning taxation, national defence and the right of eminent
domain and that no such rights or titles may be alienated to the
Government or nationals (including companies) of any third country
without the express consent of the Government of the Republic of
China. And it is further agreed that the restriction on the right
of alienation of existing rights and titles to real property
referred to in this article will be applied by the Chinese
authorities in an equitable manner and that if, and when, the
Chinese Government decline to assent to a proposed transfer by an
Australian national or company, the Chinese Government will, in a
spirit of justice and with a view to precluding loss on the part
of such nationals or companies whose interests are affected,
undertake, if so requested by such national or company to whom
permission to alienate has been refused, to take over the rights
and titles in question and pay adequate compensation therefor.

(2) The High Contracting Parties also agree that if it should be
the desire of the Government of the Republic of China to replace
by new deeds of ownership existing leases in perpetuity or other
documentary evidence relating to real property held by Australian
nationals or companies or by His Majesty's Government in the
Commonwealth of Australia, the replacement shall be made by the
Chinese authorities without charges of any sort and the new deeds
of ownership shall fully protect the holders of such leases or
other documentary evidence and their legal heirs and assigns
without diminution of their prior rights and interests including
the rights of alienation.

(3) The High Contracting Parties agree further that Australian
nationals or companies and His Majesty's Government in the
Commonwealth of Australia shall not be required or asked by the
Chinese authorities to make any payments of fees in connection
with land transfers for or with relation to any period prior to
the effective date of this treaty.

ARTICLE V

The present Treaty shall be ratified and the instruments of
ratification shall be exchanged at Chungking as soon as possible.

The Treaty shall come into force on the day of the exchange of
ratifications.

In witness whereof the above-mentioned plenipotentiaries have
signed the present Treaty and affixed thereto their seal.

Done at Chungking this ... day of the ... month of the 32nd year
of the Republic of China, in duplicate in Chinese and English,
both texts being equally authentic.

[AA:A989, 43/305/2, v]

1 Lin Sen.


[AA:A989, 43/305/2, v]
Last Updated: 11 September 2013
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