My S.C.5, extraterritoriality in China. [1]

(1) Mackenzie King has now advised that Chinese Minister in Ottawa
[2] 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. [3]

(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 [4] 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.