,
Germany,
Russia,
France and
Japan dividing
China. The
Treaty of Nanjing, concluded in 1842, granted the British government
extra-territorial rights in China, which included mainly commercial rights for British companies and extra-territorial rights for British nationals in China. British subjects could only be prosecuted for crimes or have civil cases brought against them before British Consular courts or the
British Supreme Court for China and Japan. The need to modify the conditions of extra-territorial rights in China arose from the dire situation vis à vis military cooperation between Britain, China, and the US, following the Japanese invasion of China in 1937 and later during the
Second World War. On 18 July 1940, British Prime Minister
Winston Churchill declared in parliament his government's intention of relinquishing extra-territorial rights in China once peace was concluded. The issue was raised again following the outbreak of war in the Pacific in December 1941, and at this point the British position was greatly influenced by the US position. Already in March 1942, agreement was reached among State Department officials regarding the need to modify existing agreements with the Chinese government in the latter's favour in order to improve relations. On 25 April 1942, the British government sounded its positions on the matter in a memorandum to the US government, in which it agreed to abolish
extra-territorial jurisdiction in principle, but suggested to postpone negotiations to that effect until the end of the war. On 6 May 1942, the US government responded to the British memorandum that it was not desirable to abrogate extra-territoriality in China at the moment, but that it would consider doing so in case approached about it by the Chinese government. On 27 August 1942, US Secretary of State
Cordell Hull suggested that in case negotiations for relinquishing extra-territoriality commence, the treaty should provide for • abrogation of the Boxer Protocol of 1901 and of the international settlement in Shanghai, • settlement of legal issues resulting from the termination of the diplomatic quarter in Beijing, • new legal arrangements to allow the retention of some foreign landed property in China under the new policy, • similar rights for Chinese nationals in the US as US nationals in China, • reciprocity in consular representation for the US and China, • negotiations for comprehensive new treaties on commerce within 6 months following the termination of the war, and • settlement of all disputes on the rights of Americans in China according to norms of international law. The British government was not receptive at first to Hull's proposals, but the US government began pressing London to start negotiations with Chongqing right away, fearing lest waiting until the war's end will strengthen Chinese public pressures to adopt stiffer positions vis-a-vis the US and British governments. On 3 October 1942, the US government submitted to the British government a draft US-Chinese treaty based on Hull's proposal of 27 August. The Chinese side first indicated its desire to abolish extraterritoriality in August 1942, in a conversation between Wang Beng-shen, advisor to
Chiang Kai-shek on Japanese affairs, and member of the British embassy in Chongqing. The Chinese adviser stated that the Chinese government desired to abolish extra-territorial rights in Shanghai, and was willing to grant some special status to British companies in that city. As a result of US pressure, the British government agreed in early October 1942 to enter negotiations with the Chinese government on the abrogation of extra-territoriality, and on 9 October the US and British governments officially notified the Chinese government of their initiative to that effect. Negotiations eventually led to the conclusion of two similar treaties in January 1943 between China and the UK and US respectively agreeing the relinquishment of extra-territorial rights in China. ==Terms of the treaty==