Your telegram S.C.3. [1] While I appreciate the strength of your
argument I feel that having submitted the proposals to the Chinese
Government for the Treaty [2] it is most desirable that we should
first inform the Chinese that we will not go beyond the Articles
contained in my telegram S. 17 of January 31st. [3] If they
withdraw the counter proposals leaving the Treaty without Articles
5 to 7 I feel that we are morally bound to sign, since such a
Treaty was what we ourselves proposed. Withdrawal from the Treaty
at this stage would suggest that we are afraid of the immigration
issue being raised whereas we have a good reason for not signing
the extra Chinese Articles. I agree that the exchange of notes is
preferable in principle but having asked for a Treaty it will be
difficult to withdraw our proposal and substitute the exchange of
notes. If the Chinese refuse to sign without Articles 5, 6 and 7
of their counter proposals then we can suggest the exchange of
notes.

I urge serious consideration of this aspect and will take no
further action pending your instructions.

EGGLESTON