In pursuance of the basic purpose of the Joint Declaration of Japan and China concerning Co-operation for the Prosecution of the War and in conformity with the stipulations of the Agreement between Japan and China concerning the Retrocession of Concessions and Relinquishment of Extraterritorial Rights, both which were signed on January 9 of this year, the Japanese Government had, as the first step with reference to the extraterritorial rights enjoyed by Japan in China, their Ambassador to China carry on negotiations with the Foreign Minister of the National Government of China concerning a draft treaty based upon a concrete plan deliberated upon and formulated by the Technical Commission mentioned in Article 6 of the said Agreement which relates to the application of the laws and regulations of China relative to taxation on Japanese subjects. Satisfactory agreement on the draft having been reached as a result of the negotiations, the Treaty between Japan and China concerning Taxation on Japanese subjects, the Supplementary Agreement to the Treaty and the Terms of Understanding relating thereto between the Japanese and Chinese Plenipotentiaries were signed at Nanking today, July 31, 1943.