Your 46. [2]

Chinese extra-territoriality. We had expected to have completed
negotiations before this to enable us to agree to issue of Order
in Council. Difficulties, however, have arisen in that whereas we
desire simple treaty dealing with abrogation only, Chinese have
submitted counter proposals covering the wider matters and draft
exchange of notes of United Kingdom treaty.

If we agree to issue of Order it would appear that we would have
no rights to negotiate over. As Canada is in similar position and
is not even so far advanced in negotiations as Australia, I would
be glad to learn whether Canada has agreed to Order, or what she
has proposed as an alternative.

In circumstances best course would seem to be to state expressly
in preamble that Australia and other Dominions are excluded from
operation of Order.