My S.C.5, extraterritoriality in China. 
(1) Mackenzie King has now advised that Chinese Minister in Ottawa  did not indicate any objection to Canadian draft when submitted to him. Canadian Government has twice requested reply from Chinese Government but has not yet received any. Canadian policy has been substantially the same as ours in that Canadian Government has had no intention of including in the present treaty anything beyond the abrogation of extraterritorial rights. 
(2) We do not appreciate the necessity for any exchange of Notes which deal with multitudinous matters that do not affect Australia and include matters such as coastal trade, inland navigation, foreign pilots, Chinese customs, which we would prefer not to discuss at this stage. Exchange of Notes was perhaps necessary in case of British and American treaties in view of scope thereof, being really a preliminary to wider treaties of commerce and navigation contemplated in the near future. In my S.C.4 of 6th February  there was no mention of any exchange of Notes; you should avoid any discussion on this subject.
(3) As previously indicated, there has been no deviation from our intention that the Australian treaty should cover abrogation of extraterritorial rights only, and it is desired you now continue negotiations on lines set out in S.C.4.
(4) We have every confidence in future Chinese-Australian relationships, but these will be confirmed and strengthened if course set out herein is accepted by Chinese Government.