[57 STAT. country shall enjoy within the territory of the other country with respect to the coasting trade and inland navigation treatment as favor- able as that accorded to the vessels of any third country. It is mutually understood that the Government of the United States of America relinquishes the special rights which naval vessels of the United States of America have been accorded in the waters of the Republic of China and that the Government of the Republic of China and the Government of the United States of America shall extend to each other the mutual courtesy of visits by their warships in accordance with international usage and comity. It is mutually understood that questions which are not covered by the present treaty and exchange of notes and which may affect the sovereignty of the Republic of China shall be discussed by repre- sentatives of the two Governments and shall be decided in accordance with generally accepted principles of international law and with modern international practice. With reference to Article IV of the treaty, the Government of the Republic of China hereby declares that the restriction on the right of alienation of existing rights or titles to real property referred to in that article will be applied by the Chinese authorities in an equitable manner and that if and when the Chinese Government declines to give assent to a proposed transfer the Chinese Government will, in a spirit of justice and with a view to precluding loss on the part of American nationals whose interests are affected, undertake, if the American party in interest so desires, to take over the right or title in question and to pay adequate compensation therefor. It is mutually understood that the orders, decrees, judgments, de- cisions and other acts of the United States Court for China and of the Consular Courts of the United States of America in China shall be con- sidered as res judicata and shall, when necessary, be enforced by the Chinese authorities. It is further understood that any cases pending before the United States Court for China and the Consular Courts of the United States of America in China at the time of the coming into effect of this treaty shall, if the plaintiff or petitioner so desires, be remitted to the appropriate courts of the Government of the Republic of China which shall proceed as expeditiously as possible with their disposition and in so doing shall in so far as practicable apply the laws of the United States of America. It is understood that these agreements and understandings if con- firmed by Your Excellency's Government shall be considered as form- ing an integral part of the treaty signed today and shall be considered as effective upon the date of the entrance into force of that treaty. I shall be much obliged if Your Excellency will confirm the foregoing. I avail myself of this opportunity to renew to Your Excellency the assurances of my highest consideration. WET TAo-maNo Honorable COBDELmHua Secretary of State TREATIES 782
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