Received 25 November 1943

The Canadian Minister [1] has shown me copy of a telegram from
Ottawa, the contents of which have been on the basis communicated
to you [2], indicating that the Canadian Government is now
considering signature of a treaty on the lines of the British
Treaty and including the right to travel, reside and carry on
commerce.

I am seriously concerned at the possibility that Canada may sign
this treaty and leave Australia as the only country with
diplomatic relations with China which has not formally abolished
extraterritoriality.

Although we have a logical reply to this in our offer of either a
treaty or an exchange of notes, this would not prevent the Chinese
bringing strong public pressure to bear on us to sign the treaty
on British lines. I consider Chinese failure to reply to our last
proposal [3] is because they hope Canadians will accept the treaty
on British lines leaving only Australia outstanding. Such a
contingency should be avoided at all costs and I strongly urge
that if you are still unprepared to sign the treaty including
Articles 6, 7 and 8, of the British Treaty [4] you should make
representations to the Canadian Government to delay their
signature.

EGGLESTON